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