“The key to the success in any business is strong controls in two areas… administrative and finance. You have to enforce discipline. . . . ”
– Ed Quinn, Chairman, TW Perry as quoted in The Washington Post here.
This is the first in a series of Business Quizzes to ignite your business brain to focus on elements of smart growth.
In this edition, let’s take a look at finance (next week we will look at administration). 50 years and over 400 turnarounds means Quinn must be doing something right.
Focusing on the basics and setting a sound foundation with the Financial Capital Management of the business.
Take this quick quiz and let’s how well you know your numbers:
- Do you know your company’s key performance indicators (KPI)?
- Does your company rely on KPIs to make decisions and act?
- Does your company have regular, early morning meetings to review your KPI?
- Are you and your key leaders able to interpret the Profit & Loss, Balance Sheet and Statement of Cashflows?
- Is the company operating on a Budget with projections?
- Is the Budget reviewed weekly?
- Do you and your key leaders analyze financial results against past time periods?
A business leader’s primary responsibility is to focus on the future, look over the horizon and see opportunities to pursue and pitfalls to avoid.
As the Chief Operating Officer, I never let more than a few days go by without reviewing our numbers to ensure we were on budget and had accurate reports. This is critical for short and long-term success. Give us a call to discuss your answers and grade the quiz.
Clients often engage us to sell their businesses and the first thing we review are their financials because that is where the enterprise value is calculated. The sooner you control and know your numbers, the more valuable your company will become.
Give us a call today and discuss your answers and grade the quiz.
You need a good business attorney, acting as a strategic advisor, who knows and understands your company at all levels and focuses on the best interests of the business now and in the future.
Decide what you want your company’s future to be and call General Counsel, P.C. for a consultation and legal fitness checkup on your company’s operations, stress points, structure, HR Policies and Procedures (strategic HR not just administrative “where’s my vacation time on my pay slip?” type HR) and team needs so you can grow a great business – a living company that can survive and thrive in the future.
General Counsel P.C. has the expertise, skill and–the real key–unique experience of running companies as C Level Executives that makes a difference when advising our clients on: (i) structuring operations for efficiency and legal protection (which means more value); (ii) administration (not just overhead but value added elements); and (iii) Sales/Marketing (proper incentive based compensation causing the behavior that drives results!).
Call us for a consultation.
See your future. Plan your future. Control your business destiny.
General Counsel, P.C. Corporate and Tax Practice Group