JDT Advisory
In a recent survey, 95% of business owners agreed that having a transition strategy is important for their own future and the future of their business. But only 42% of the owners had a formal written transition plan. This lack of preparation is particularly concerning since approximately 50% of all business exits are involuntary and are prompted …
In the words of Peter Drucker, “Entrepreneurs believe that profit is what matters most in a new enterprise. But profit is secondary. Cash flow matters most.” (Emphasis added.) No matter where you are on your Wealthpreneur journey, the importance of cash flow cannot be overemphasized! Even if you own a very profitable business, you may find yourself asking, …
The most successful Wealthpreneurs know the importance of profit in their businesses. If a business is struggling to improve its pretax profit as a percent of revenue, owners frequently attempt to reduce costs. But, based on my experience working with Wealthpreneurs, a key factor that is commonly overlooked is labor productivity. Keep your eye on the prize!It is easiest to monitor …
Peter Drucker once said, “Profit for a company is like oxygen for a person.” You can’t hold your breath forever, and your business can’t survive for long without profit. Business owners often hire commission-focused intermediaries (like investment bankers and business brokers) whose influence leads many business owners to mistakenly overemphasize the importance of EBITDA (earnings …
