Category: Budgeting

Chart of Total Privately-Owned Housing Units Started

A housing start is defined as when excavation begins for the foundation of the building.  Home construction is important to the economy as it has wide spread effects on numerous related industries, to include:  banking, mortgage industry, construction materials and land prices. The housing market is being affected by slightly higher mortgage rates, higher price…
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Five Concepts for Managing and Compensating Salespeople

Salespeople are important to a business’s growth and success, but it is even more important for a business to manage, measure and compensate salespeople’s performance. First – the best way to compensate salespeople is on gross margin.  Salespeople that are incented on gross margin sell the business’s products for the best price and at the…
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Increase Revenue or Profitability?

Executives often talk about the business’s revenue growth, but fail to focus on the profitability of the business.  Over time there have been many businesses that have grown themselves right out of business by just focusing on revenue growth. Revenue growth is a wonderful thing for any business, but revenue growth at the sacrifice of…
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Budgeting: Is it Worth the Time and Effort? Do You Need a Map for a Road Trip?

Budgeting:  Is it worth the time and effort?  Simply stated – businesses should be budgeting for annual business plans, special projects, capital equipment purchases, new product development and more. Businesses that fail to budget have no defined plan to project growth, manage and judge the performance of the business.  Lack of any kind of budgeting…
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Budget – Even If It’s on the Back of a Napkin

by Daniel R. Siburg, CPA, CVA A budget on the back of a napkin is better than no budget at all.  Even the simplest of budgets will make management think about the coming year’s future direction and performance goals for the business. Budgeting Helps the Business Look Forward to the Coming Year Budgeting is important…
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Financial Business Modeling can Help Executives Predict Outcomes

By: Daniel R. Siburg, CPA, CVA Basic Assumptions Related to a Business Decision Executives base major financial business decisions on a series of assumptions most often centered on risk and cost. For a new line of goods, risk factors include projections, such as, “The new product line will grow at X rate.” Or, if a…
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