When you talk about your business with someone that might have an interest in loaning you money, or joining you as a partner, or buying the business, they will want to see the Cash Flow Statement. Continue reading
Tag Archives: key performance indicators
A Short Course in Numbers
John McCarthy, computer and cognitive scientist who coined the term “artificial intelligence” stated…”he who refuses to do arithmetic is doomed to talk nonsense.”
In the next few newsletters I hope to help you through some of the numbers of business. Recently I wrote about KPIs, Key Performance Indicators. Many of the KPIs in business take at least a basic understanding of a few mathematical concepts. In this article I’d like to introduce or reintroduce you to Ratio. Don’t run – stick with me – it will be painless, I promise, and if you need more help, just call for an appointment to work on the numbers for your business. Continue reading
Key Performance Indicators
There is a primary problem with measurement. You can measure a million different things. Measure too much and you’ll drown in a sea of meaningless data.
Some measurements are more important than others. Key Performance Indicators (KPIs) are measurements of the critical parts of a system. Measurements that don’t help you make improvements to your system are worse than worthless: they’re a waste of your limited attention and energy. You don’t have time to pay attention to everything – just a few key measurements that actually matter. Continue reading