Category: Budgeting

The Upside and Downside of Economic Transition Risk

There are businesses that do well and prosper during difficult economic time (recession, pandemic, legislative changes, inflation) while other businesses struggle or go out of business.   Businesses that experienced an economic upside during the pandemic were real estate, home furnishings, home improvement and technology companies.  People moved to the suburbs, set up home offices,…
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Map of the Hourly Wage by State

As of January 1, 2020, the Federal minimum wage is $7.25 per hour.  There are numerous states that have set their minimum wages higher than the Federal minimum wage.  See the map below for your state’s minimum wage. An employer of tipped employees is only required to pay that employee $2.13 per hour in direct…
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The “Feckless Business”

The “Feckless Business” is a business that is managed irresponsibly and lacks initiative.  Or another way of putting it, a business that has no budget or strategic plan and just exists day to day with ownership and management dealing with problems of their own making.   It is easy being a “Feckless Business” with no…
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Willful Blindness

“Willful Blindness” in a business is the conscious act of avoiding the truth, which gives credence to the knowledge of an issue in question, but never resolving the issue. Willful blindness can be at any level of management or on any type of business issue that needs to be addressed and resolved. A business’s willful…
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What Is The Path Forward Into 2021?

What is the path forward into 2021? A strategic plan will make the journey into 2021 easier.

Business Drift

“Business Drift” is a perpetual problem with any business, big or small, in any industry.  In the food and distillery industry it is called “Flavor Drift”.  In business, “Drift” is the act of slowly drifting away from the core business.  This can either be intentional or unintentional.   Businesses that avoid “Drift” are emphatic about…
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The Difference Between a Business Recovery and Business Growth

There are numerous businesses starting to reopen and recover from the past months of slow or no business.  Sales are starting to rise as customers are starting a buy again, both of which are great signs for a business recovery and business growth.  Now let us talk about the difference between a business’s recovery and…
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Chart of the Price Change Between Years for Hotels and Casino Hotels During August 2015 to August 2020

The chart shows producer price index (PPI) data that measure price changes. Percent changes in prices from a year ago are shown for both stand-alone hotels (the gold bar) and hotels attached to casinos (the red bar). Prices began dropping for hotels in February 2020 and the price reductions continue to persist, but hotels attached…
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A Strategic Plan is About Communication

A Strategic Plan is about communicating financial and operational objectives by taking numbers and converting them to words. The reason for Strategic Planning is to implement a plan of action that will make the business’s Vision/Strategic Plan a reality.  Strategic Planning is the actual process of implementing a Strategic Plan that has set obtainable and…
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Evaluating and Operationalizing Short-Term Decisions Made in a Crisis that Have Long Term Benefits

In the past six months, businesses have been making numerous short-term decisions that can have long term operational benefits.  The key is to evaluate and operationalize these short-term decisions to provide long term benefits to the business operations. The fact is that almost all businesses during the past six months have been forced to do…
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