Analysis for Managers: Financial Ratios
Analysis for Managers: Financial Ratios If I were to tell you that someone weighs 75 lbs, you might say that he/she is a very light person. But what if I told you that person was a one-year-old? You would probably either fall off your chair, drop you phone on the ground or just flat out think I was bluffing. And what if I told you that a certain company made a $1 million profit last year? Sounds like a big number, right? Does it change your perspective if I tell you that this company did $100 billion in sales last year? That’s only a 0.1% profit margin. Pretty slim in all reality. The...
Read MoreAnalysis for Managers: Cash Flow
Analysis for Managers: Cash Flow Have you ever been confused at the fact that you can sit at your desk and wonder, “How on Earth am I going to make payroll?” and yet the P&L (Profit and Loss statement) your accountant or QuickBooks just showed you says that your company is turning a healthy profit? Welcome to cash flow problems! This won’t be a completely comprehensive article on the subject but it should be enough to at least get you started or pique your interest. And for many, this will just be a quick review. Below are four key points regarding the ever important concept of...
Read MoreAnalysis for Managers: Industry Analysis
Analysis for Managers: Industry Analysis The next important analysis to undertake around your business is an industry analysis. This is where we look at the entire landscape of the economic branch in which your business operates. To do this we’ll use a well-known and effective tool, called the “Porter’s Five Forces,” which helps a manager to understand the current and future profitability outlook of his/her business. Figuratively and literally, each of these “forces” presses/suppresses profit margins within a given industry. So, grab some paper, a...
Read MoreNew Series: Analysis for Managers
New Series: Analysis for Managers An essential capability of managers is the ability to analyze. Analyze situations, numbers, markets, trends, products, people, financials, and more. For that reason, we’re excited to launch our newest series: Analysis for Managers. This new series will feature posts on everything from the cognitive process of analysis to analyzing financial ratios and a business’ customer base. But before you decide that you’re exempt from “this type of thing” and your not planning to read our upcoming posts because you “never liked math...
Read MoreBecoming a Coach
Becoming a Coach Thinking back to the most impactful people in your lives, who have they been? For many, it’s family members, friends, bosses and undoubtedly–sports or other coaches. Coaches in particular tend to have a special place in peoples’ hearts as these coaches often expected the most of of them and gave them the most time and energy. Likewise, it could be said that any good teacher, mentor or influencer is a “coach.” Today, we’re going to discuss Joseph Weintraub and James Hunt’s four reasons managers should spend more time not only...
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