CashFlow ABC

In any business setting, you need to be measuring appropriate Key Performance Indicators (KPI’s) to keep on top of the performance of the business.  The basic process for utilizing KPI’s is:

Identify what measurements are most important to your business
Measure the “current state” of the KPI’s
Establish targets for where you want them to get to
Measure the …

Continue reading CashFlowABC Episode 9 – Key Performance Indicators

EOQ is a method for setting a consistent order quantities that both minimize ordering and inventory carrying costs.  EOQ can be used hand in hand with reorder point systems as they function under similar assumptions:

That demand is relatively constant and known.
The order quantity is usually the same.  (The EOQ will remain constant until the review …

Continue reading CashFlowABC Episode 8 – Economic Order Quantities

Asset protection

Form an LLC or incorporate to protect your personal assets - Don’t comingle.  Use a business entity to separate your personal and business self.

Priorities

Payroll first – pay your employees first …

Continue reading CashFlowABC Episode 7 – Principles of Cash Savvy Business Management