Recent Articles

Capital

A section of the balance sheet that quantifies the amount invested by owners/stockholders in a business operation.

Business Barriers

09/03/2017

No business is instantaneously successful.   There are multiple obstacles referred to as barriers all owners and managers have to overcome.   There are three primary groups of barriers for every business out there.   They include capital [...]

Debt or Equity in Small Business – Fundamentals

01/30/2017

Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI).   I find this laughable in our modern economic times given the low cost [...]

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 [...]

Three Primary Characteristics of Successful Businesses

11/11/2014

Well, this is my 200th article in two years.  So I’m going back to the very first article I wrote and essentially rewriting that piece.  When I reviewed it, I thought how poorly written and formatted the piece is and therefore I wanted to make [...]

Stock

10/02/2014

The one single term mostly equated to capitalism is ‘Stock’.  When a business is incorporated, stock is the core medium of exchange for the investment.  The company issues a certificate referred to as stock in exchange for the investment – [...]

Syndication

08/12/2014

Syndication refers to a group of individuals or business entities working together to achieve a set goal(s).  In business, the goals vary.  The most common goal is to acquire capital and use the combined power of the group in exercising that [...]

Internal Revenue Service (IRS) Definition of an Expense

04/03/2013

The Internal Revenue Service defines a business expense as ‘ordinary’ and ‘necessary’.  Ordinary expenses are those costs typically incurred in your industry.  So a restaurant would not ordinarily purchase vaccines.  And a medical [...]

Capitalizing a New Home Builder Business

01/30/2013

Bankrolling any startup business is difficult enough.  Capitalizing a new home builder operation is a leap forward in required funds.  Typically, small businesses can be capitalized on a shoestring budget, for a new home contractor, just a little [...]
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