Not all companies are successful. The end game can be a failure of the business. In fact, many angel investors or venture capitalists look for and respect the lessons learned by entrepreneurs that have survived a failed business.
Growing companies usually require more working capital during their periods of rapid growth. In past insights we have calculated the amount of additional capital needed for a business as it grows, and the additional capital required is often surprisingly large.
From a sports car to an aircraft to a super tanker, successful operation depends upon the pilot’s understanding and urgent, timely use of a dashboard. Real time information is critical to real time decision-making, and increasingly in the modern business world, decisions are made by management without extended meetings or discussion with others.
At the MIT Center of Collective Intelligence, professors and graduate students are wrestling with an important opportunity—and gaining ground. With new collaborative tools available for use in the cloud, people are no longer isolated in their creative endeavors.
There are a number of key performance indicators that help new generation company management see more clearly their progress and corporate health. Here are some of these measures, and how to calculate them. You will recognize the value of these for any business, even if they have not been in common use in the past.
Although there is still a place for display advertising in this new world, increasingly small businesses are discovering that creating buzz and engaging their audiences through social media are more powerful and cost effective.
There is such leverage in high gross profit margins once a company is past break-even. Every dollar of gross profit falls to the bottom line, increasing net profit faster with each transaction. The point is that once a company is stable at or above the break-even point, one incremental unit generates robust increases in net profit.
This is one of those “My dad used to say” homilies. You’ve probably heard the accompanying “It takes just as much effort to sell a small deal as a big one,” over the years. The truth of this is more nuanced.
Much of workplace safety is common sense. But there is a natural tension between economy of operation and provision for safety for employees, and the resulting risk to the enterprise must be carefully weighed.
Have you been open in sharing your knowledge and talent with a backup, or even a potential successor? It is prudent and certainly a sign that you take this responsibility personally as a leader among your peers and subordinates.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.