An introduction to Cost of Goods Sold

I recently had a call with an individual who helps stabilize distressed companies, and in the course of our conversation he mentioned that it’s important for him to understand what a client’s cost of goods are like.  That’s an excellent point, and one that I think needs to be brought into our conversations about finance.  For one thing, cost of goods is an expense, and like any other expense it’s important to keep an eye on it and control it.  Continue reading “An introduction to Cost of Goods Sold”

What financial reports should I be looking at?

Several months ago I led a small business financial workshop on making investment decisions at a conference, and one of the questions that came up during Q&A was which financial reports a business owner should be looking at on a regular basis.  It’s a good question, I felt that I should address it here Continue reading “What financial reports should I be looking at?”

How much capacity does your business have?

A while back I wrote a post about how you’re a good philosophical approach to business is to think of it as building an asset, and I used a neighborhood building under construction as my inspiration (which you can read here).  Well, I haven’t seen any construction activity for a while, the building appears to be completed, but it’s empty!  There’s available capacity, but the owner isn’t making any money from it. Continue reading “How much capacity does your business have?”