Wednesday, February 14, 2018

The top 5 finantial metrics that can create a competitive advantage



Source: https://goo.gl/X5uocn

Regardless of the size of a company, it is empirical that every organization knows and fully understands their current standing, their goals and aspirations, and how to attain these set goals. Financial metrics have traditionally been an indicator of a company´s overall performance. Each finance department is expected to establish and track specific financial goals in an interdepartmental and integrated manner to enable the organization to function effectively.

These financial goals and metrics, often patterned after industry standards, acts as important indicators of a company´s success as it allows organizations to link strategic goals to direct performance and it connects relevant information to important decisions.

Here are the top 5 financial goals and metrics (in no particular order) that can create a competitive advantage for an organization:

Cash Flow

Cash flow represents the cash on hand after deducting investment and working capital increases from the company´s operating cash flow. It is usually used as a measure of a company´s financial health. It is an indicator of how well its resources are being managed and how they are utilized to generate more cash for other investments. This metric is important for companies when forecasting a significant capital expenditure or when following through a specific project.

Asset and Risk management

This metric is all about optimal management of cash, receivables, inventory (aka current assets) as well as management of payables and accruals and the efficient management of its working capital and cash conversion cycle. This is an important metric when a company is evaluating its performance against benchmarked companies.

At the same time, it is also important for a company to manage uncertainties through proper and timely identification, measurement, and control of current risks in terms of corporate governance and regulatory compliance. This metric is important because companies must undertake serious assessments when anticipating greater uncertainty in the business. A process must be in place to assess likelihood of occurrence, its financial impact, and ways of mitigating the cause and effects of the risks identified.

Growth Indices

This metric enables companies to assess and evaluate market share growth, sales growth, and acceptable trade off growth in terms of reductions in cash flows, profit margin, and ROI.

Growth oftentimes depletes cash and reserve borrowing funds such that rigorous asset management is required in order to manage cash flow and to limit borrowing. This metric ensures that companies set growth index goals when growth rates are not as forecasted in comparison to benchmarked companies in the industry.
Profitability ratios

This metric is used to measure operational efficiency. It indicates areas for improvement and the areas that need corrective measures. This metric ensures that companies set profitability ratio goals when they need to operate more effectively and when they want to pursue other improvements within the business.

Tax Optimization

This metric ensures that there is management of tax liability undertaken as an organization conducts business and as an organization tries to reduce the expected taxes. For any company, new acquisitions or projects must be weighed against tax implications and net after tax contribution to the company´s value. A company´s performance must be measured on an after tax basis as much as possible.

Having all these financial metrics fosters a culture of a balanced scorecard as a means to evaluate the performance of the company. It is undeniably an open secret that several strategies fail on execution which is why these metrics will assist companies in implementing and monitoring their strategies by having specific, measurable, realistic, and industry related goals.

Business Visibility

Accurate and real time visibility into the business through an automated financial system is very important in order to track the key performance indicators of a business. It has become very important that every organization has an ability to pull data across the organization and compile it in an intelligent and automated way in order to scale operations quickly and effectively.

Modern technology has now allowed companies to have readily accessible data that can afford them greater predictability and better forecasting of revenues, expenses, cash flow, etc. By benchmarking these metrics, companies can have early warning signals in order to correct certain areas immediately before it affects the financial health of a company. Just as important is the ability to manage non-financial metrics.
e software.

Thursday, February 8, 2018

JN Tiger Construction testimonial

"Thanks for enlighten JN Tiger Construction Inc with your knowledge and expertise. You have helped me move forward with your advice and you have thought me many things that make me work better and be more efficient ... Thanks Soledad Tanner Consulting!"
 
 Javier Orozco
 Founder of JN Tiger Construction Inc.

Tuesday, February 6, 2018

How to escape feelings of inadequacy when it comes to your business

Source:  www.due.com 

Writenn by: Choncé Maddoux




It happens to even the best entrepreneurs. You get a killer business idea or turn a passion into profit and start working for yourself.

You find out that running a business may or may not turn out to be what you thought it would be but it is rewarding after you put in lots of effort and countless hours of work.

Yet and still, it’s easy to feel discouraged and inadequate when you don’t meet certain business goals or if it takes you longer than you anticipated to accomplish something.

Feeling “meh” about your business sometimes is normal seeing as it’s common to run low on steam or compare yourself to someone who seems to be doing better than you but it’s never good to maintain feelings of inadequacy if you truly want to be successful. You have to work to get rid of the downer of these thoughts.

To escape these negative feelings and get back on track, keep these three actionable tips in mind:
Never Compare Your Beginning to Someone Else’s Middle or End Results

One of the main things that you can you feel inadequate about when it comes to your business is when you compare yourself to other people in your niche. There is probably always going to be someone who seems to be doing better than you or they seem like they are working harder than you are.

While you can use the success of others to motivate you and inspire you and get some tips from them to help you — you should never take their actions to heart. You are not them and they are not you.

Comparing is pretty much a waste of time and effort because everyone starts their entrepreneurial journey at different times and has their own unique situations to deal with. If you just started your business a year ago and you’re comparing your success to someone who has been running their business for 4 years, that’s pretty unfair to yourself and a good way to bring on discouragement — and you don’t need that.

The person who has been running their business for several years longer than you has time to make mistakes and learn through trial and error while you may not have had that much time. Remember that you are on your own path and try not to let other people’s timeline affect you.
Get a Coach

Running a business can be lonely at times and you may find that you need lots of support and encouragement for the ups and downs. If you are constantly feeling stuck, you might want to consider hiring a coach or mentor to help you break through and get clearer on your mission or vision.

Having a coach is also great for accountability. For example, if you’ve been meaning to publish a book for years now, your coach or mentor can hold you accountable for that goal so you can actually start making progress on it.

A coach or mentor can also help you identify new strategies to improve your business and personal success, especially if they have already reached the level of success that you wish to obtain.
Focus on One Thing At a Time

If you are feeling like you never get a chance to finish any of your big projects or put enough attention to detail into them, try to slow down and focus on one thing at a time.

It has been studied over and over — Multi-tasking hardly ever works because it pulls your attention in a hundred different directions and can actually slow you down.

If you have big moves to make with your business, map everything out on a calendar and business plan, and focus on each item one-by-one. Once you’ve completed a project and you are pleased with the results, then you can move to the next thing. Remember that you do not have to be 100 percent pleased. It will help move you along more quickly to find the “good enough” ground. Remember, good — and good enough — not perfect. Perfectionists tend to move slower and often discourage themselves into a slump.

This may seem to be a slower way to do things, but it is more effective and will allow you to feel more accomplished in the long run.
Summary: Acknowledge Your Progress and Focus

Feelings of inadequacy often stem from insecurities that may or may not even actually exist. Your first step to overcoming those negative feelings are to take a step back and acknowledge your progress made thus far.

Recognize and celebrate your wins both large and small, then move forward by choosing one or more of the three action-based tips mentioned above.

Remember to stay focused and shy away from letting what others are doing influence how you measure the worth of your business. Focus on your own path.