I have been working on my tee shots for the past two years — to no avail — until this week. A little adjustment in my swing (courtesy of my son) and all of a sudden I am finally smacking it off the tee box again. But alas, as soon as that problem is corrected, my faithful wedges have abandoned me. Which reminded me of something from my days as an entrepreneur….
As soon as we got through one crisis in our business, it seemed another reared its ugly head. It was a pattern that seemed to occur over and over.
I guess the continual challenge of the next crisis or problem is one of the things that makes golf — and entrepreneurship — so fascinating. Perfection is an unrealistic goal for either pursuit.
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If you are a golfer and have never played any of the Robert Trent Jones Golf Trail in Alabama I cannot give it a strong enough recommendation. The courses are beautiful and challenging and the service is great. They are also a real bargain! Add it to your to-do list.
Web Resources for Entrepreneurs
Here is a great listing of various web-based resources for entrepreneurs put together by Marcus Zillman.
So Who’s Right?
We keep hearing that small business owners are optimistic. The latest comes from the Discover Small Business Watch poll (via Rasmussen Reports).
“Small business owners are often the first to feel the effects of changes in the larger economy, so we believe they are an important barometer to track,” said Sastry Rachakonda, director of Discover’s small business credit card. “Based on our Watch numbers, economic confidence appears to be steady. However, cash flow is something to keep an eye on when it comes to small business indicators.”
Those who watch Wall Street are beginning to see ominous signs. It all started in a big public way when Alan Greenspan opened his pie whole and suggested that a recession was on the horizon. The stock market reacted quickly. Now we are beginning to hear speculation on how this impending recession would impact the 2008 election.
So which barometer is correct — Main Street’s confidence or Wall Street’s nervous investors?
Bruins are Dancin’ and I’m Goin’ Golfing
March brings two things in the world of academia — basketball tournaments and spring break.
First, hats off to the Belmont Men’s basketball team for making it two straight years to the Big Dance! Go Bruins! Hopefully our women will follow-up next weekend with another tournament birth.
I am taking a few days to play a few of the Robert Trent Jones Golf Trail courses down in Alabama with our son for our spring break. (To my students — Yes, I also will be grading your business plans). My blogging will be a little hit and miss this week…
Greetings from Tupelo
I am here in Tupelo, Mississippi today to speak as part of their celebration of Entrepreneurship Week. It is interesting that their economic news this week is being dominated by Toyota’s announcement that they will be building a $1.3 billion factory to manufacture Highlanders here in Tupelo.
While I am happy for the workers down here who desperately need those jobs due to the many plant closings that have occurred in this part of the South, I hope that they also recognize that the best long-term economic growth plan will be one that focuses on entrepreneurial economic development. Such plant relocations do have a positive short-term effect, but their long-term impact has come under question in several recent studies.
Even though the announcement of the Toyota plant is surely overshadowing Entrepreneurship Week here in Tupelo, I hope that they continue to focus on entrepreneurial economic development.
Controller? Bookkeeper? CFO?
“Maybe it’s time for you to get a Controller.”
Entrepreneurs who experience significant growth in their business may eventually hear this advice. Financial management in a growing business can become strained, and eventually it can become time to upgrade your team. What exactly does a controller do in a business? And how much will one cost me?
The titles bookkeeper, controller and CFO can get tossed around rather loosely in small and growing ventures. But, these titles have specific meaning. And which type your business really needs can vary from situation to situation.
A bookkeeper performs basic financial record keeping and can create simple financial reports. A bookkeeper does the following basic tasks:
– Keeps accurate records of financial transactions and can create basic financial statements (Income Statement and Balance Sheet) using accounting software.
– Performs basic A/P management — makes sure bills get paid and records these entries into the accounting system.
– Performs basic A/R management — if the business has to send invoices to customers to get paid, sends out invoices usually once a month.
Moving up to a controller adds more power to your financial management. In fact, a good controller can often pay for herself in a growing company that needs more advanced systems by helping to keep costs under control and by helping to better manage cash flow. A controller does the following tasks:
– A controller will either perform all of the functions of a bookkeeper, or supervise the staff that does.
– They can create customized daily, weekly and monthly financial reports to meet the specific needs of your business.
– They have the knowledge to choose and maintain financial software.
– They can take over the basic cash flow management of the business. Major cash flow decisions will still be up to the entrepreneur, however.
Some businesses eventually need a Chief Financial Officer. But many very large organizations don’t have one, so don’t assume that your business will. We never had one in our business even though we got quite large and complex. A CFO does the following tasks:
– Performs all functions of a Controller.
– Is able to structure and negotiate complex financing, including debt and equity.
– Can create complex financial projections to aid in strategic decision making, and is an active player in the strategic management of the business.
– Manages banker and other financial relationships for the business.
A senior bookkeeper can cost between $30 – $50,000, depending on the local market and their work experience. A controller can cost at least twice that. And an experienced CFO can cost twice as much as a controller. Again, salaries can vary widely between various cities, and experience levels will also be a major contributor. So talk to other entrepreneurs in your area who have larger businesses than yours to get an idea of the local market salaries for these positions.
Use your CPA firm and your network of fellow entrepreneurs to find a pool of applicants. Placing a general ad should be your last resort, as it will be difficult for you to differentiate between the actual skills and competencies of the candidates.
New and Improved Carnival of the Capitalists
The Carnival of the Capitalists has launched its “new 2.0” version of its weekly offerings of posts about all things to do with free enterprise. It is now much more selective in its links. Should prove to be a good read each week with this new format.
Entrepreneurship Week
Entrepreneurship Week is here. I look at this week with mixed emotions.
While I am pleased at the attention it draws to entrepreneurs in our economy, it saddens me that we relegate entrepreneurs to merely one week. After all, entrepreneurship is now 50% of the economy.
Having only our own week puts entrepreneurship right there in the mix with National Fresh Squeezed Juice Week, National Pancake Week, National Cleaning Week, National Condom Week (I am not making these up…), National Fig Week, National Backyard Games Week, and National Chestnut Week.
Why not give us a whole month? That would at least put us up there with National Hot Tea Month, National Bird Feeding Month, National Umbrella Month, National Kite Month, National Sweet Vidalia Month, National Bikini Month, National Horseradish Month, and last but not least, National Pomegranate Month.
Any way….Happy Entrepreneurship Week!
Network Neutrality
Some issues span the political spectrum. This is one of them. Don’t let duplicity between the federal government and a handful of large public corporations end the Internet as we know it. Click on the play button in the image below to play the video (it may take a few moments to fully load….be patient).
Thanks to Bruce Schierstedt for passing this along.
Happy Birthday, President Washington
So what do I think about on this the 275th anniversary of George Washington’s birth? His heroics as a general? His leadership of our new nation? His wooden teeth? Nope. It is Washington’s success as an entrepreneur. If you’ve ever taken the tour of Mount Vernon, you already know the rest of this story. But for the rest of you, read this article at Opinion Journal by John Fund titled Moonshine Patriot: George Washington, whiskey entrepreneur.
“He thought like an American businessman,” says Jim Rees, the executive director of Washington’s Mount Vernon estate. “He was a true disciple of the free enterprise system, and he sensed that our new system of government would encourage people to think creatively, take chances and invest.”
Here is a picture of the archaeological dig site of the distillery at Mount Vernon:
If you want an historic account of George Washington’s pursuit of free enterprise read this paper from the Mount Vernon archives.
(Thanks to John Russell for suggesting this post).