Business owners have to raise money for their vision. Often, they have borrowed to have sufficient money to fund their dream. They hire people, cover payroll and other expenses. This is called the multiplier effect. One dollar in a business for profit can move through other businesses four to five times. If the owner is fortunate enough to cover the …
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Being Realistic
It’s been our experience that business owners focus on the “urgent”, to borrow a term from Stephen Coney (The 7 Habits of Highly Effective People). They have to meet customer demands and payroll among a myriad of other daily tugs on their focus. If you ask an owner what their business is worth, it will be hard to determine a good number. There’s a “wished …
5 Observations About Building a Portfolio
Having invested over 100,000 hours into my professional career discussing money with people, well into the “red zone” of my career; here are five observations: Taxes most likely will be higher in the future! When I came into the business, tax rates stood at 70%. That’s right, 70% of your gross income went to the government. Many deductions were …
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Opportunity
It has been my experience that people who chase yields will ultimately be disappointed with their results. There is always someone who has done “better” in the time being measured. A simple example of opportunity is the business owner who can take advantage of 2-10, net 30. That means a 2% reduction in the invoice if paid within 10 days; or the net amount …
