Profits On Purpose | Bill McDermott
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Author: Bill McDermott

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The Great Recession is clearly a thing of the past. The economy appears to be expanding. Businesses are seeing sales, growth, and profits. Entrepreneurs are experimenting with new products and markets, starting new divisions and making investments in people.
When you first start your business and begin recording business transactions, you must decide whether to use cash basis or accrual basis accounting.  The big difference is in how you record your cash transactions.  Many people use cash basis accounting for taxes and accrual basis for managing the business.  Here are 5 things you must know when considering which to use.
There seems to be a lot of business acquisition activity in the marketplace right now. I have several clients that are in various stages of this process. Depending on whether you're on the buy side or the sell side, here are three ways the acquisition can get financed.
Bankerese is a language understood by bankers, but is a foreign language to most business owners.  Communication is happening, but the business owner doesn't understand what's being said or the implications it has for his or her business.  Often, we step in and interpret.  Here are three of the most important ones to know:
Some people are risk takers and don’t mind going in to debt and some are totally debt averse.  They don’t borrow at all.
Businesses that took out debt a year ago or even 3 years ago may find themselves in a situation where the cash flow used for the loan or the purpose of the loan has changed.  Many businesses find themselves in a situation where a refinance makes sense because they either want to reduce their loan payments to use cash flow for growth or they may want to increase the loan amount because their business is expanding.  Businesses are dynamic, but a loan repayment is usually static due to the fixed term of the loan. A floating rate loan is the exception.
Securing financing for your business can be challenging.  Whether you're borrowing money for the first time to start your business or you're looking for a loan to grow, the lending criteria banks use can be rigorous.  It's important to know what are the must haves that a bank is looking for to approve your loan.  Here are the top 4:
If you're thinking about starting a business, you know you're going to need financing. Some banks like lending to start ups, some don't. You've heard of the 5 C's of credit:
Fundamentally, there are four ways to increase profitability (without merging with another company).  There are no quick fixes. Gradual progress will get you there, but you must focus your strategy and execution on one or two to be successful.
Trying to grow your business and having a hard time?  Join the club!  Growing your business can be one of the most challenging things you do. If you're having a hard time, here are 5 of the most common barriers to growing your business.
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