The terminology for limited liability companies can be confusing. For instance: who are the members, managers and managing members?
All of the owners of an LLC are its members, similar to stockholders in a corporation.
There are two different possible management structures for LLCs: A manager managed LLC or a member managed LLC.
Topics: Business Operations, Business Best Practices, Legal, Strategic Planning
Weve written several articles about the importance of regular financial benchmarking (both internal and external) for the health of a business. Of all the financial benchmark ratios a business owner could use to measure the financial health of their business, liquidity ratios may be the most important.
Topics: Featured, Management, Blog Posts, Strategic Planning, The Corner Office, Accounting & Finance
This week, I broke the half-century mark. Professionally, the last 25 years have been spent neck-deep in the financial industry. Hopefully, I learned a few things along the way.
Once, I thought 50 was really old. However, some of the people I respect and admire most were very productive well into their 80s, if not their 90s. They opened my eyes as to what can be accomplished north of 50. If you stay active, there is much truth in the adage that “age is a frame of mind.”
Topics: Strategic Planning
At some point in every growing business, it becomes apparent that moving forward will require raising cash. Whether it’s to buy or replace equipment and other assets, hire new staff, move to a bigger facility, or any of the other elements that come into play when a company is expanding, business owners often find themselves at a crossroads.
Topics: Strategic Planning
Learn how others do it. Download our guide to growth.
Topics: Strategic Planning
Great employees are a wonderful asset, but their individual heroics may not be healthy for your company.
Sooner or later you will move on from your business. When you begin planning for your transition, what will your company systems sound like when described to a critical buyer?
Topics: Business Operations, Strategic Planning
Most pricing strategies can be categorized as cost-plus or value-based. Both are good but incomplete. In my experience, those who set the prices don’t know, forget, or leave out costs that they shouldn’t. Sometimes it is the cost of the salary of the principals. Sometimes it’s all the costs involved in being able to provide this product or service.
Value-based pricing incorporates the costs and the value this product or service provides the customer. If all the true total costs are accounted for, then determining what the customer gets out of it should be relatively simple. Market research, competitive analysis, and usability testing gives you a place to start.
However, while value-based pricing can help you get the right customers, it doesn’t focus on helping you keep those customers, or on encouraging them to “recruit” others like them. A Legacy Pricing™ strategy can accomplish both. It not only focuses on the present of your company, but lays out a path to a bright future for your business.
Topics: Strategic Planning
Last month we discussed understanding the realistic value of your business. The current state of the financial markets is a big factor, but beauty is also in the eye of the beholder. Different buyers value acquisitions in different ways. Knowing the type of buyer that your company will attract is an important element in estimating its value.
There are three major classes of buyers: entrepreneurs, professional (or financial) buyers, and strategic acquirers. Each class seeks different opportunities, and pays based on different metrics.
Topics: Strategic Planning
I attended the Innovation Engineering college several years ago. My instructor introduced one topic by saying it was a secret sauce, an amazing accelerator, easy to do, and free! Then he added, “But I know you’re not going to do it.”
Topics: Strategic Planning
With the financial markets dropping more than 10% between July and August, it seemed appropriate to have Wally Weitz, who embodies calmness and discipline, lecture my Texas Lutheran University students.
Topics: Strategic Planning, Accounting & Finance, Investing
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