|
|
|
A new business owner often begins by taking some of their personal funds, in addition to funds they borrow from a lending institution to provide their new business with the necessary fixtures, equipment, and inventory as well as provide the necessary capital to pay operating expense until the business is turn a profit. While the funds from the lending institution will have a prescribed schedule for repayment, the funds that the business owner often do not. In reality, while the owner of the business may not have a schedule for the repayment of these funds, the owner should know what kind of return is being earned by the investment. This calculator requires information from the year end profit and loss statement, the balance sheet, and requires some calculation from the month end balance sheets. For the 'average inventory on hand' and the 'average accounts receivable' calculations you will need the appropriate number from each of the 12 month end balance sheets. Add the 12 numbers together and divide by 12 to obtain the average. To learn the most from this exercise, we would suggest that after completing the chart with the actual numbers from your business, you would begin to change numbers to what you believe you can achieve and see what the return on investment percentage changes to. As you do so, you will learn how to make the investment in your business provide you with a bigger return. PROFITS PLUS, FOUNDER OF...
©1998-2026 Profits Plus Solutions, Inc. |
MARCH 2026
|
With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
Every time I see the logo for Target stores, I think about small businesses and the need to know which people to target as their customers. Of course, of most importance is the person who has spent any money with your business.
I ask businesses if they know how much the average person spends with their business. Most offer a quick response with a dollar amount. That answer is incorrect as they are telling me what the average existing customer is spending. The average person in any community spends no money with that small business.
Looking for new customers without any plan of how to do so is just spending money. That is why every small business needs to know how to find and use information. Find ideas in the March Small Business Advisory.
Small Business
Employee retention; is it important? Or is it easier to lose an employee and wait for the next applicant to walk in the door? The Small Business News for March shares some statistics of the expense you incur when you make the change instead of working to retain a current employee.
It is baseball season and we use the sport as an explanation of the cost of growing your business. In Boston's Fenway Park, left field has a wall that is know as the green monster.
And that is what growing your business is - a monster! You can't successfully grow your business without a plan and knowing you will have the cash on hand to pay for the growth.
Are you selling something or persuading the customer? With your employees are you repeatedly telling that employee or are you persuading them to excel?
Influence: The Psychology of Persuasion by Robert Ciaidini is our suggested book for March 2026. Most definitely an appropriate read.
All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
