Blog & Resources

The first quarter of the fiscal year just came to a close and it's the best time to review your business financial statements. While this may seem like an obvious thing to do, most people think of reviewing their financial documents as fun as washing dishes. However, there’s a lot to be learned from washing dishes. There’s a Buddhist teaching that says, “Wash the dishes to wash the dishes.” I learned not to whine about doing the dishes from a poem my mother had by the sink, “Thank Heaven for Dirty Dishes.” And in this article in The Atlantic, “Doing the Dishes is the Worst,” Dan Carlson, an assistant professor of family and consumer studies at the University of Utah, wrote dish washing, unlike other chores such as cooking or gardening, “does not beget compliments, he observes: ‘What is there to say? ‘Oh, the silverware is so … sparkly?’” What does dishwashing have to do with reviewing business financials? Nobody is going to say to you, “Your spreadsheet is so pristine!” Yet just like...

I speak with small business owners, start-ups and people with great business ideas all the time.  Most want to know how to get investors or loans for their businesses.  I want to make it very clear that small businesses are very risky investments.  The risk of loss is high, and the benefit of reward seems low. You, as the leader must demonstrate or make the case that you're going to win.  You are a winner, and let investors or funders see not only your passion for what you do but also ready to tell them about the 5 pillars of your business and how you are working hard to reduce the inherent risks of the investment. And you are working hard to make an impact that is ten times greater than the investment they made.   Map out these 5 items with as much specific, yet concise detail as you can. Need words, pictures and justifiable financial projections. Idea (need to exist risk) Minimal Viable Product (reduce  market risk) Management Team (reducing execution risk) Strategic...

A man from my workshop, "Financing Your Small Business” walked up to me afterwards in the parking lot.  He lamented that he was told in a military retirement workshop to call the Small Business Administration, (SBA) and get a $25,000 loan no questions asked. He called the SBA and they told him that they didn’t know what he was talking about. Did I know anything about it? No, I don’t know anything about it. I’ve checked with many reliable sources and there is no 'no questions asked' money for veterans. And by reliable, I don’t mean the internet because when I did an internet search on “free money for veterans” several links popped up. It would be a waste of time clicking on them. It’s difficult for many veterans to transition to civilian life. I know because my father was a veteran of three wars, WWII, Korea and Vietnam and he always missed the military life. He was honored to put his life on the line for the U.S.A. during his military career but he felt under-appreciated or...

I'm in the midst of listening to "Scarcity" by  Sendhil Mullainathan, Eldar Shafir. It has a lot to do with behavioral finance, which is how people really act around money.   I was intrigued by a study they did that shows that our mental bandwidth is diminished when we're faced with scarcity in our lives. A memorable example from the book is how sugar cane farmers have narrower mental bandwidths pre-harvest. But, after harvest, when there's abundance, these farmers' minds are able to think more clearly, remember things better, with more creativity and self-control.   I've noticed, that it's usual for people - men and women - to have narrow mental bandwidths around money and finance. What I try to do with clients is instill two senses - a sense of safety - and a sense of abundance that's grounded in reality.  Maybe it's a slight trick of the mind but it helps increase bandwidth so that they can think clearly to find some creative solutions to increase their businesses' profitability....

How will your business grow? - Thoughts on estimates and assumptions. Last Saturday I sat on a panel “Get funded!!” at the Hera Venture Summit. Cathy Pucher of SDSU’s Zahn Center brought up a great point that when an entrepreneur creates financial projections she should identify her assumptions and be ready to explain her rationale to investors or lenders. Afterwards, an entrepreneur came up to me and joked, “She assumed I knew what an assumption is. What’s an assumption?” It was pretty clear that this entrepreneur wasn’t ready to learn the concept. But for those of you who are let me share my thoughts. An assumption is a statement that is taken for granted and not questioned. As an entrepreneur you commit a lot of time, money and talent to your business. Do yourself a favor and don’t assume that your business idea is going to catch on quickly and grow exponentially. Question this assumption and even resurrect the scientific method that you learned in grade school. Make your...