I remember meeting with a local small business owner who was frustrated with the level of knowledge key employees had on what drives profits and cash flow.
Key employees would advocate for more and more inventory, just in case, it was needed. The owners knew that each piece of inventory had a high cost and the extra inventory would sit on the shelf tying up cash and eating up profits in carrying costs, “just in case.” These same employees would fail to charge customers for work performed because it did not “feel right” to charge for all of their time, even though most customers were in an industry making record profits. Finally, the employees would routinely discount jobs and parts because they wanted to “take care of the customer” without regard to the effect this would have on the business in terms of profitability and cash flow.
You can see from the examples employees had a level of autonomy and were empowered to make decisions. The owners were experienced entrepreneurs who say they have tried to educate employees on what drives profits and cash flow but to no avail.
Does this sound familiar? The owners understood what drives profits and cash flow, but they found it difficult to teach these principles to their key employees. They needed the right tools to teach how money flows through the business.
There is help in the way of an extensive two-day workshop that will give small business owners the tools to better teach the financial knowledge their key employees need. The workshop is called Profit Mastery. Many believe it is among the finest financial knowledge/acumen courses for small to medium-sized businesses. There are many testimonials attesting to this belief.
The Angelo State University Small Business Development Center is offering the two-day Profit Mastery workshop on Friday, January 18th and Friday, January 25th. The instructor is himself a former small business owner and commercial lender. His style is down to earth and he teaches in a humorous, easy to understand way. Participants work in workbooks after each section, which is facilitated by those certified in Profit Mastery.
Those who attend the workshop will walk away with a greater ability to make business decisions based on their new level of financial acumen. They will also be better able to teach and coach their employees on the factors that drive profits and cash flow so they too can make better decisions for the financial health of the business.
For more information on the workshop or for other assistance the SBDC can provide, see contact me at the email listed. Thank you and best wishes for a positive cash flow!
Business Tips” was written by Mr. Dave Erickson, Director and Certified Business Advisor IV, of Angelo State University’s Small Business Development Center. For more information on the topic of this article or the services of the ASU · SBDC, contact him at David.Erickson@angelo.edu.