Category Archives: Protecting the business

Forecast your cash position and sleep more soundly.

Posted on April 11, 2011 by Dave Berkus

In the past insight, we created an example to demonstrate that it truly takes money to make money; that growth calls for increases in working capital. The example we crafted proved that companies can easily find themselves strapped for cash … Continue reading →

Posted in Growth!, Protecting the business | 1 Comment

Growth calls for more cash, not less.

Posted on April 3, 2011 by Dave Berkus

Here we must do a little math calculation together to make a point.  Assume that your gross margin from sales is 50% for ease in calculation.  Assume 30 days to collect receivables from completed work, and 30 days to complete … Continue reading →

Posted in Growth!, Protecting the business | Leave a comment

Never use short term borrowing to cover long term debt.

Posted on March 21, 2011 by Dave Berkus

This insight is one that is so important to the continued health of a growing company that it cannot be overstated.  First, let’s be sure we know what is short in term and what is long in term.  Long term … Continue reading →

Posted in Hedging against downturns, Protecting the business | 3 Comments

When cash is tight – slow its flight!

Posted on February 14, 2011 by Dave Berkus

We have discussed why never to run out of cash.  This insight delves into how never to run out of cash.  There are four basic ways to increase the cash position of a company:  inject cash through borrowing or investment, … Continue reading →

Posted in Protecting the business | 2 Comments

Never run out of money.

Posted on February 7, 2011 by Dave Berkus

Money in the bank is like oil in the car. This is such an obvious observation that you should think that it does not rise to the level of an “insight”.  Yet, there is sage advice behind this statement that … Continue reading →

Posted in Growth!, Protecting the business | 1 Comment

The FAIRNESS doctrine

Posted on January 24, 2011 by Dave Berkus

Reduce the emotion; reduce the threat of lawsuit. You’ve certainly experienced the angry outburst from an associate or employee who has just learned of an event that the person took as “unfair”, no matter how rational the explanation by the … Continue reading →

Posted in Depending upon others, Protecting the business | 3 Comments

The 18 month rule.

Posted on January 17, 2011 by Dave Berkus

It can take 18 months from initial concern about a critical employee to getting a replacement up to speed. This insight is not mine, although I have experienced it several times with key employees since becoming sensitive to the concept.  … Continue reading →

Posted in Protecting the business, Surrounding yourself with talent | 1 Comment

Contractors must really be independent!

Posted on January 9, 2011 by Dave Berkus

How many of us have “hired” independent contractors over the years, a bit worried over the gray area between employee and contractor as defined by the IRS?  I’ve experienced the results of a wrong decision, and the IRS and state … Continue reading →

Posted in Protecting the business | 3 Comments

Employee first, company last, states the law.

Posted on January 3, 2011 by Dave Berkus

Almost all laws dealing with employment are designed to protect the employee, not the company. Minimum wage laws, workplace safety, independent contractor tests, minimum hours required for benefits, worker compensation insurance requirements and more are examples of such laws.  Notice … Continue reading →

Posted in Protecting the business | 1 Comment

A worker compensation policy is not optional.

Posted on December 17, 2010 by Dave Berkus

This is one that early stage CEO’s are almost universally unaware of.  Most every state requires that any company with employees be covered by a policy of insurance against claims by workers for injury on the job, or worker compensation … Continue reading →

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