For most entrepreneurs and small business owners, revenue represents success. The bigger the number, the better the business, or so conventional wisdom suggests.

As an entrepreneur, enjoying a peaceful night's sleep can often seem like a rare luxury. The primary culprit behind these sleepless nights typically revolves around cash flow concerns. Questions such as "Will I have sufficient funds to meet payroll?" and "Do I possess the necessary capital for business expansion?" are common anxieties among our clients. So, how much cash is truly adequate? Our response is grounded in data analysis. After scrutinizing the cash flow cycles of n

Let's dive into the world of marketing. For many businesses, it's parallel to rocket fuel, propelling them to remarkable heights. Yet, for some, it remains an elusive black hole, seemingly absorbing resources without visible returns. At Simple Numbers, our experience spans both of these scenarios.   It's important to note that while we're not marketing experts, our primary focus lies in enhancing business profitability. Naturally, this intersects with marketing, making it a f

At CRI Simple Numbers, we honor traditional accounting practices and enhance them with innovative methods. Our goal? To keep your finances in check and propel your business forward with strategic insights and tailor-made solutions. Here is what makes us different in the financial services world: Data-Driven Strategies: We utilize a rich database of business intelligence to formulate financial strategies that are both innovative and practical. We set new standards in the indus

Entrepreneurs often contemplate initiating a second venture post-exit from their primary business. A common stipulation is to run a business that does not require managing employees or clients—a rather humorous expectation considering that employees are fundamental to any business' success. As such, questions about effective methods for reviewing compensation frequently arise. In this article, we focus on why businesses should reconsider adopting the traditional Cost of Livin

One of the most common areas of feedback we receive from clients comes from our Simple Numbers P&L view. Traditional financial reporting has so many lines and accounts that the reader will go cross-eyed! In developing our view of the P&L, we had a couple of objectives in mind. The first was to keep the most critical and actionable data visible. This would include gross margin, direct labor, management labor, and operating income. We then attacked the remainder of the P&L by b

We are all overloaded. No one has the capacity. We are running around with our hair on fire. Essential things are slipping through the cracks. Our sales team is booked for weeks. There simply isn’t enough time in the day! Sounds like a list of good problems to have! Not really, especially when this is the case, and there is little to no profit to show for it. So where is the issue? If we are all so busy, then shouldn’t we be profitable? One of the most common reasons for this

At Simple Numbers, we consult with several hundred small business clients at any given time. We are asked many questions, from hiring to firing, capital, investment, labor efficiency, etc. Let’s focus on hiring for a moment regarding businesses looking to scale, as there are typically two approaches to adding the next person or persons to the payroll. To examine both methods, let’s start with the corresponding hiring questions: I have so much work coming in; how much labor sh

A significant pain point for clients in the $1-$5 million range is transitioning the owner from a do-it-all machine to a targeted role solely focused on scaling the company. The need for capital, stressed resources, and availability make this extremely difficult for many of our clients. For the most part, the owner has always been the primary driver of sales in the organization. Let’s face it: no one can sell like the owner can (in most cases!). Like clockwork, the answer to

We have seen it everywhere throughout the past year: employee productivity is down. How can business owners combat this decline in productivity? When base wages aren't working to drive high output, employers can try incentive plans. How these plans are structured is the difference between success and increased costs with no actual effect on productivity. The first thing to consider when structuring an incentive plan is what success looks like. What behavior or result are we

We’ve all been to a social event with other entrepreneurs when the “size of your business” conversation starts. In most cases, we tend to equate Revenue with size. We also often equate success with Revenue. As we see the inner workings of hundreds of businesses each year, we often return to the saying – “revenue is vanity; profit is sanity.” Let’s dig deeper and discuss why. Back to the conversation. “How large is your business?” “Well, we usually run around $20 million,” r

Imagine getting your first car as a teenager—was it an older model? Maybe one equipped with a tough-as-nails engine but lacking in horsepower at times? Did you have to turn off the A/C in the summer to make it to the top of a steep hill sometimes? Similarly, while working with business owners and executive teams, we often come across companies facing comparable situations. They might possess a strong value proposition and a competent team, but their engine fails to produce en

Over the years, we’ve taken hundreds of calls with small business owners to gather valuable insights.

For many entrepreneurial businesses, the battle is real. There is a great deal of uncertainty in the future. Depending upon who you ask, we may be in a recession, headed for a recession, or coming out of a recession. Over the past 12 months, we have seen the performance of many businesses take a sharp turn downward. The most prominent question is – “Should I reduce labor costs to hit the profit target or try to ride it out?” Although capital plays the most critical role in th

Business owners and entrepreneurs often look at the prior year and/or our favorite, rolling 12 data. While neither is bad per se, they are frequently not indicative of what’s happening more recently. We like to look at a rolling three or quarter view of the business. Why? Because recent decisions made by the organization, for example, price increases, will show up on the rolling three but not be picked up yet on the rolling 12. It can also show you a broader picture of what i

How did Simple Numbers get started? In a meeting with his EO Forum, Greg Crabtree learned that his forum mates wanted more from their accountant, i.e., No April 15 surprises, no bill-by-the-hour services, and, most importantly, analysis of financial data. From there, Greg began doing financial modeling and consulting for clients, eventually turning it into the CORE service and authoring two books on business finance. What is the profile of your typical client? An entrepreneur

Can you imagine entrepreneurs driving on the interstate at 75 mph with blindfolds? They can somewhat feel the road but are helpless to know about dangers around or ahead of them, like the possibility of driving off a cliff. This scenario mirrors the financial situation of many entrepreneurs today who desperately need guidance to regain control of their business’ circumstances. A first step towards seeing clearly into your business is to ensure your P&L (Profit and Loss state