Recent Articles

Industry Standards

Learn about perfromance standards and methods to monitor performance in your business operation. There a multitude of tools and principles to guide the business owner to success.

Occupancy Rate – How to Evaluate

08/19/2017

In the real estate sector lies the temporary housing industry.   Temporary housing includes hotels, motels, resorts, apartment complexes and rental homes.   The number one tool to measure performance is occupancy rate.   This is the number of [...]

P&L Statement – Best Format for Salons

02/01/2017

An owner of a hair salon needs a well organized and properly formatted profit and loss statement (income statement) to properly evaluate performance.   There are multiple presentation formats used in the service industry, but after 21 years of [...]

Financial Leverage in Real Estate

01/04/2017

Financial leverage refers to using a third party’s money to increase profit for the borrower.  In real estate the profit or equity in the property is the weight being lifted by the use of a lever (borrowing money) on the fulcrum (the [...]

Replacement Reserves- Understanding the Fundamentals

04/09/2016

Long term and short term housing rental businesses use a financial operations tool to maintain, repair and upgrade the physical facilities.  This tool is known as replacement reserves in the real estate industry.  In almost all cases it is a [...]

Business Dynamics of Hauling

01/18/2016

One of the industries in the transportation sector is materials hauling.  This is your dump truck industry.  All of us see these trucks out on the highway usually hauling gravel or dirt.  To profit well, efficiency is the primary business [...]

Retaining Stylists In The Hair Industry

12/05/2015

A good question was posed by a former client about how to solve a problem in the service industry. It is the revolving door of stylists in the salon industry. This constant movement of stylists from one salon to another is actually bad business. So [...]

Using Cash in Construction

11/19/2015

There is a notion in business that using cash to pay for materials or service is illegal.  IT IS NOT ILLEGAL TO PAY FOR MATERIALS OR SERVICE WITH CASH.  It is illegal to do this if you do not properly document the transaction.  This is especially [...]

Don’t Flip Them, Finance The Flip!

07/21/2015

The rage in real estate for the last 15 years has been flipping houses.  Simple principle of buy low, fix it up and sell high – House Flipping Business Dynamics.  What if I told you there was more money to be made with less risk and very little [...]

Hospitality Industry Characterized by High Fixed Costs

07/07/2015

There is one unique financial characteristic that is synonymous with the hospitality industry; that is high fixed costs.  Or another way of stating the same financial attribute is to simply state that the hospitality industry has low variable [...]
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