New Book Offers Help to Small Business Owners

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Easy to Understand and Easy to Implement Solutions to Help Small Business Performance

Mission Viejo, CA – April 19, 2012 – With the current business slow-down and recession in its fourth year, a new book from author, business coach and corporate trainer John Bulman titled, “Profitability Thinking:  Simple Concepts, Strategies and Tools to Effectively Manage Cash Flow and Make More Profitable Business Decisions,” offers small business owners and managers easy to understand ways to improve the performance of their businesses that can be simply and quickly implemented.

According to the author, “Many small business owners and managers don’t understand the metrics generated by their businesses and business activities, and how they might be used to increase profitability, manage cash flow, reduce their business risk and improve their management effectiveness.  Typically these business people want to understand how to use their internal metrics and financials to improve the performance of their businesses, but find the information overwhelming and don’t know where to begin. ”

He added, “These business skills are important in the best of times.  In a recession, the ability to use  these skills may determine whether a business survives.”

According to Bulman, here are three things small business owners and managers can do right now to make a difference in the performance of their businesses.  The book presents them in an easy to understand way that will supply business people the tools to improve their business’s performance.

1.   Make a commitment to read the

  • Income Statement
  • Balance Sheet
  • Cash Flow Statement

monthly at a minimum, and read the

  • Aged Receivables Report
  • Aged Payables Report

weekly at a minimum.  These are the basics to get control of a business.  Make sure the format of the Income Statement and Balance Sheet have enough detail to identify key areas of the business, and have them presented with several sequential months side by side so trends can be identified.  Bulman said, “Doing this will improve profitability and reduce business risk.”

2.  Know the breakeven point for the business, and how to project profits for it under various pricing, volume, contribution margin, marketing and cost assumptions that you might consider.  According to the author, “Knowing this information will help make better business decisions and avoid costly mistakes because the likely effects of decisions will be understood before they’re made.”

3.  Improve sales and margins by suggesting related purchases with high margins.  Also and related to selling additional high margin products and services is up selling to a better product or service with better margins.  Finally, add more value to your product or service and charge for it.  According to Bulman, “Doing creative things with what you sell will improve margins and the average sale per customer, and improve the bottom line.”

The author concluded that, “Recessions are temporary, but effective business  management pays dividends as long as the business exists.  If small business owners and managers use the concepts, strategies and tools outlined in the book, their business’s performance will improve as will their bottom line.

For articles, Excel based tools and videos about how to improve business performance, as well as information about how to obtain the book, “Profitability Thinking,” please visit www.profitabilitythinking.com.

About the author

profitabilitythinking

John Bulman is a business coach and trainer who combines financial acumen with a background in financial management, sales management and supply chain management to create business performance solutions using key metrics to define process improvements. He has a unique talent for deciphering complex financial and operational matters, and explaining them in a way a layman can easily understand.

John holds a MBA from the Illinois Institute of Technology - Stuart School in Chicago as well as a BA from National-Louis University. He is married and lives in Mission Viejo, California. John Bulman can be reached at [email protected].

By profitabilitythinking