SIMPLE NUMBERS, STRAIGHT TALK, BIG PROFITS!: 4 Keys to Unlock Your Business Potential
by Greg Crabtree (with Beverly Blair Harzog)
Many entrepreneurs struggle to understand and manage their finances. In this book, Greg Crabtree simplifies business finance, and presents 4 profit levers to help you make smart business decisions and grow a profitable business. The insights are ideal for small businesses (from startups to $5mil revenue), though they’re also applicable for larger businesses with >$5mil revenue.
In this summary, you’ll learn:
• The 4 common financial problems that small businesses face, and learn how to use 4 keys to profitability to build a strong foundation;
• The difference between owners’ salary and equity, why owners’ wages can distort your financial numbers, and when/how to use “sweat equity”;
• Why you should aim for pretax profits of 10-15% revenue, how to survive the Black Hole and grow profitably;
• How to calculate/manage your “salary cap” and use labor productivity to drive profits
• How to master 4 components of cash flow (tax, debt, working capital and profit distribution); and
• How to set up your financial systems so you have simple but accurate numbers to make sound decisions.
Who should read this:
• Entrepreneurs, Business owners and leaders, financial managers and executives
• Business consultants and anyone interested in business finance