Get Your Mojo On!
Newsletter from Highway 2 Success - April Issue
"There's a myth that time is money. In fact, time is more precious than money. It's a nonrenewable resource. Once you've spent it, and if you've spent it badly, it's gone forever."
- Neil Fiore: Author, speaker, and trainer on managing business
_____________________________________________________
Welcome to Highway 2 Success!
Dear Friends,
In the business world, May brings the recognition of World Trade Week. This is especially important to those of us on the West Coast. For this reason, our May training will give focus to the international aspects of business. And as in the past, you will also find our Business of the Month article, business tips, and upcoming events, along with our new F.Y.I column that discusses current business issues in the news. Be sure to read through the information, and we look forward to see you at the meetings!
Please feel free to contact us with your comments or questions - and of course let us know if you would like to offer a discount to our readers or be the Business of the Month in one of our future issues!
For information on available training topics, please visit us at https://www.hwy2s.com/Entrepreneurial_Training.html.
What's Coming Up...
Our May training series:
20 WAYS TO FUND YOUR BUSINESS
With changes occurring in the venture community it is harder than ever to fund a company. Why is this happening and what can we do about it? Learn more than 20 ways you can find funding for your business.
Stephen A. Burgess is CEO of Corporate Toolbelt, a premier provider of business advisory services and interactive training workshops. He is a noted speaker, #1 best selling author and currently serves on several Boards of Directors. Steve is also Managing Partner of Smart & Sticky. He is known as 'The Business Prophet' for his ability to maximize client's profits, growth and valuation!
Discover more at www.thebusinessprophet.com or call (949) 831-7136.
*******************
BUSINESS OF THE MONTH
C Young Consulting
After serving as the CFO of a $275M high growth corporation and working as a teacher trainer for over 25 years, Mr. Carl Young opened the doors of C Young Consulting 15 years ago. His broad base of knowledge and experience in Finance and Accounting, and his ability to make this subject simple for the non-financial business manager/owner made this career a perfect fit for him. Mr. Young has a tremendous passion for teaching and training, and helping others understand what is felt to be a complex topic.
When choosing an accountant, Mr. Young suggests making certain considerations: 1) Does the Accountant understand your business? 2) Can the Accountant speak and express items and issues in a language that you can understand? Be sure to have open communication with your Accountant. When dealing with specific items and issues ask the Accountant:
¨ What does it mean
¨ What should I do given the circumstances
¨ What would you (Accountant) do
When asked what he especially enjoys about his work, Mr. Young enthusiastically responds "Dealing with People and helping them understand Finance & Accounting. I am a People person! The title of my book is Carl Young's Rules of the Business Game-It's All About People! Thirteen Rules to succeed in business based on my personal experience. This is my chosen field and I enjoy it because it deals with and relates to People!"
C Young Consulting provides a wide range of services to its clients, including Business & Motivational Presentations, Business Coaching, Webinars, and Consulting on accounting processes, procedures and systems.
What sets C Young Consulting services apart from its competition is their approach - their basic brand is Finance & Accounting Made Simple! The topic is kept simple for non-financial professionals. Mr. Young has a strong proven track record and confidently states "I have proven talents and expressed results in this. I have a broad base of experience in all phases after being in a company that started as $10M and increased to $275M. I started as Chief Accountant and rose to Chief Financial Officer. I am a high energy entertaining trainer. I use lots of wit, wisdom, anecdotes and stories from my experiences to make lasting relevant points. I guarantee all attendees learn from my session in a very relaxed and pleasing atmosphere."
Contact Information
CARL YOUNG
(404) 244-7924 Phone
(404) 244-6358 Fax
www.cyoungconsulting.com
"Lots of people reading this will instantly and vehemently disagree that Finance & Accounting is Simple! I firmly believe it is! I have made this claim for a long time. It is my brand as a teacher/trainer. I have taught and trained in finance and accounting for over 25 years in addition to serving in senior level finance & accounting positions. I can hear you saying it should be simple to you! I can't argue with your logic.
Finance & Accounting being simple to me because of experience is one dimension. My ability to make it simple for others is an even greater gifted dimension.
My claim is, Finance & Accounting is Simple if Made Simple! This is not a myth it is a meaning. My years of training have been devoted to making it simple for non-financial professionals and entrepreneurs. I have been very successful in this effort with a unique ability to make this topic easy to understand and apply.
Attendees marvel at my ability to help them overcome their fear of what is believed to be a difficult topic to learn. I provide lively, energetic presentations laced with wit, wisdom and humor aimed specifically at non financial managers and entrepreneurs.
Attendees walk away from my sessions with a basic knowledge of the essential fundamentals of finance & accounting. Included are easy to understand tools & techniques that can be applied in their business pursuits. Yes, I did say humor. Some consider humor from an accountant, an oxymoron. My natural sense of humor makes for a very relaxed learning atmosphere which enhances the learning process.
This is all done in a minimum of three hours. I make Finance & Accounting Simple! That is not a myth it is a meaning! I guarantee it!"
Carl L Young, MBA
Expert Trainer Finance & Accounting
***********
Outline of C Young Consultants
Training Program
ACCOUNTANT FOR A DAY!
On-Site Only
Length: One Day Financial Training Seminar
Number of Participants: Up to 30
Materials : Comprehensive Workbook provided
Follow-up Monitoring: No-Charge MVP six month follow up program. Attendees may contact trainer for finance seminar relevant questions by email or phone for six months following presentations.
Non-financial personnel wonder about the seemingly mysterious world of accounting. Accountants speak a language known only to accountants. Yet, this language of business is essential to non-financial personnel. Non-financial personnel shy away from accounting due to the fear that is complex and difficult to understand. No one believes it is simple!
Accounting is Simple if Made Simple! This is not a myth it is a meaning. This one day session allows attendee to become Accountants for a day to explore and examine the essential framework, fundamentals, tools, techniques, methods and models of the unique and simple world of accounting.
This session is not intended to make attendees into accountants. It is designed to help non-financial personnel understand enough about accounting in one day to provide a working knowledge of this language of business in simple easy to understand and apply terms.
The Trainer has over 25 years of accounting training experience in addition to senior level finance & accounting positions as CFO of a 275M high growth organization. His brand is Finance & Accounting Made Simple! He guarantees to make this training simple to understand and apply for non-financial personnel. This session is delivered with high energy with lots of wit, wisdom, anecdotes and humor from past experiences of the trainer.
You will learn in this exciting day of training:
· Accounting framework and fundamentals-Accounting is an art vs. science and guided by concepts and principles called Generally Accepted Accounting Principles (GAAP)
· The big picture of how transactions are transformed to financial statements
· Accounting concepts used as the framework
· Accounting principles applied to transactions and financial statements
· How accounting principles are essential for understanding the language of business
· The Language of Business -The financial status of a business is expressed in three traditional statements
· Balance Sheet-Ongoing record of financial health which shows what is "Owned" "Owed" and "Equity"
· Income Statement-Record of profit or loss for any given period as the difference in Revenue and Expenses
· Cash Flow Statement-Sources and Uses of funds for:
· Investing
· Financing
· Operations
· Understanding and Analyzing Financial Statements-Statements are understood and analyzed using various ratios and calculations as a basis for making business decisions about the future of the enterprise
· Key ratios and calculations to determine and analyze liquidity, profitability, cash position, and capital structure
· How to use these ratios to make informed business decisions
· The Role of Cash Management is the successful management of a business-Nothing is more critical than cash and the ability of the enterprises to meet its obligations as they become due
· Cash is King or Queen depending on one's gender preference
· Computing Cash position and maintaining enough cash on hand to meet obligations
· Planning & Budgeting-Planning comes before Budgeting. Planning is about subjective variables and assumptions. Budgeting is about objectives and quantified variables. Plan first then budget.
· Tools & Techniques for planning and budgeting
· How to develop a plan and budget
· The relationship of planning and budgeting to accounting
· Internal Controls Processes & Procedures-Internal controls insure accuracy and confidence in the numbers.
· Why controls, processes & procedures are important
· Their role in maintaining the accuracy of the accounting system
· Sarbanes-Oxley governance requirements and their impact on enterprises
· Internal and external audit requirements and their role in accuracy of financial statements.
· Key Business Indicators and Drivers-Traditional financial statements show results of past operations. Key Business Indicators (KBI) or Drivers provide critical benchmarks to guide future operations.
· Determining critical success elements to enterprise operations
· Developing Key Business Indicators from financial statements
· Using Key Business Indicators to communicate financial information
· Computer Systems in Finance & Accounting-Accounting is performed on computers that usually integrate the entire systems in to one data gathering repository. All statements and relevant financial information are extracted from this repository.
· An overview of how this system works in conjunction with the budgeting system
· The challenges faced in a computerized environment for auditing and insuring the accuracy of data
· External and internal reporting requirements that must be customer focused
· The future of Finance & Accounting in a global and rapidly changing technology based economy
· New theories and concepts
· Principled Based Accounting
· International auditing and accounting standards
· Supply chain management in the global economy
· RFID & Cycle Counts in inventory management
· Survival in a struggling economy
· Facing the challenge of a global economy driven by technology
· Question and Answer and Roundtable discussion of entire session featuring questions and answers attendees have about finance and accounting.
A Tip From Our Experts
**************
TIPS FROM OUR EXPERTS
What are you doing to create exit value?
by Stephen A. Burgess
When it comes to creating or increasing a company's value there are many possible factors to consider. What most owners and entrepreneurs do not understand is the variety of factors and the manner in which they can affect them and significantly change their exit value.
These factors can be divided into 3 primary groups: financial factors, management factors, and product/service factors. Let's discuss the first group that every banker, equity firm, venture capitalist, etc. considers - financial factors.
The key financial considerations usually start with earnings and cash flow. There are several derivatives of these measures but the basic components remain the same. The more 'free' cash your firm can turn out together with strong EBITDA sets up a great foundation for a good exit. Other key components include your compounded growth rate and your industry's growth rate both present and forecast.
A company with great cash flow and earnings with a 5 year compounded growth rate of 2% and slow industry growth will not be valued as highly as one with less earnings but much higher growth in a vibrant industry. Why? Simple, the investors buying the firm can not leverage their money and get the return on investment necessary to justify a higher purchase multiple. One other key factor to mention is the amount of long term liabilities of the selling company; less is almost always better.
Management factors begin with the strategies being employed to grow and build the company. I find this area to be one of the weakest areas in most organizations. It is critical to have clear, concise strategies that are communicated throughout the organization. These strategies need to be supported by a detailed business plan that can be executed on a consistent basis. Most buyers do not want to have to study the marketplace and develop new and effective strategies.
A strong management team and independent board of directors can also add value to the company. This value can be enhanced by strong affiliations with suppliers, customers, joint ventures, etc. that a strong team and board can facilitate.
The third category, product/service factors, can also be critical in valuation. Having a strong brand and product position in the marketplace can raise valuation considerably. Try to have one or more products/services in high growth markets or those that are poised to grow in the near future. Also, be sure your company is not a "one hit wonder", that is, have more than one primary product or service. Diversity in product lines allows for stability and implementation of new products or services or variations of prior ones. Your market share is also a factor, having a dominant market position can allow the company to have stronger margins and profits and limit competition. Additionally, a firm possessing particular intellectual property, trademarks, or unique technologies can see gains in their valuation.
As you can see, these three groups can all significantly affect a company's exit valuation. When you consider all the factors mentioned, and others of lesser significance, it may seem overwhelming. How do you assess where you are in each critical area and how do you maximize your company's ability to deliver in each critical area?
Start with well-researched, winning, focused strategies that are implemented via an up-to-date business plan and a strong management team. You can 'manage' your market position and share, expand your growth rate, increase cash flow, create stronger affiliations, broaden your product positioning, and so much more by sticking to the fundamental building blocks of high exit valuation companies. I know, I built 4 consecutive high growth companies in 4 different industries while maximizing company valuation. You can too!
All materials are copyright © 2006 Corporate Toolbelt & Stephen A. Burgess. All rights reserved.
******************
F.Y.I
This is an article that we found fascinating, and felt our readers would also find interest in. We do not take any credit for it - please note the link to the actual website we found the article on.
From the website of Braun Consulting
www.braunconsulting.com
Cell phone litigation is one of the new types of litigation springing up all around the country. Whenever there is a vehicle or other type of accident and a cell phone is involved you can bet a law suit may not be far away.
If an employer provides cellular phones, or if cellular phone use is a necessary part of a job, then that employer can be liable for problems created by their employee's use of cell phones while driving or otherwise working for the employer.
Even if employees are not officially on company business, and in some cases not even making a business call, employers can still be held liable if an accident involves a cell phone provided or permitted by the employer.
Some States, Cities and Counties are enacting their own "negligent driving" laws relating to, among other things, cell phone use while driving in a vehicle. Since laws are different in different areas, and new laws being enacted on a regular basis, employers are often creating policies that universally cover any situations involving use of cell phones related to company business or on company time.
And, don't forget that employer's also have a duty under most all state safety laws as well as OSHA to take proper steps and establish policies that insure worker safety. That includes safe use of cell phones.
There is some validity to the concern for cell phone use while driving or working.
A 1997 study reported in the New England Journal of Medicine indicates that drivers are four times more likely to have an automobile accident while using a cell phone...even if it is one of the "hands free" type of phone.
With the current climate as it is, many employers are implementing cell phone policies. We will cover some of those in this article.
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Case Studies and Recent Rulings.
Some of the cases recently involving liability issues and cell phone use have had settlements for large amounts of money.
Consider the following:
One of the more notable cases involving use of a cell phone involved a Smith Barney stockbroker (Robert Tarone) in Pennsylvania who hit and killed a 24 year-old motorcyclist - a father of two. Tarone was driving and talking on his cell phone on the way to a non-business related dinner. The company did not provide its employees with cellular phones, and there was no evidence that the employee was using his cell phone at the time of the accident.
Mr. Tarone maintained that he was on the phone making "cold calls" when the accident occurred. Since other employee's testified that making "cold calls" on personal time (and even on a personal cell phone) was often expected of a stockbroker in order to contact hard to reach individuals, his employer was held by the plaintiff to have been liable.
The company believed that it could defeat the plaintiff's vicarious liability claim by showing that the employee was not acting within the scope of his employment at the time of the accident. However, the plaintiff also alleged that the firm was negligent when it encouraged employees to use cell phones without training them on the potential hazards and risks.
The firm decided to avoid the potential risk that an impassioned jury might make in a judgement, and awarded the victim's family a $500,000 settlement to assure that it would have a guaranteed cut-off on damages. No legal judgement was made in this case, but clearly a messy legal battle could have ensued from this large gray area of laws and liabilities concerning cell phone use by a company employee who had an accident while on the phone.
In this case a good written policy along with a procedure outlining safe operation of the cell phone would have strengthened defendants position that it was not liable.
In another case Dykes Industries of Little Rock lost a $20.9 million lawsuit for personal injuries sustained by a citizen in a car accident where a Dykes employee was using a cell phone at the exact moment of the accident.
Cooley Godward, a Virginia-based law firm, was slapped with a $30 million wrongful death suit where an employee of theirs was conducting business on her cell phone when she struck and killed a fifteen-year-old boy with her car.
The State of Hawaii agreed to pay $2.5 million as its share of liability for an accident involving a state employee who allegedly was talking on her cell phone when she hit a tourist from New Jersey and caused permanent brain damage to him. The state was found twenty percent liable for the plaintiff's injuries.
--------------------------------------------------------------------------------
Information on Employer Liability.
Some notable points on employer liability involving the use of cell phones are listed below:
Employers can be liable for problems or accidents created by an employee's use of cell phones while driving if a company provides the phones, or if cell phone use is a necessary or encouraged option as part of their job.
Employers can incur liability whether or not the call is personal or business related.
Risks fall into two categories: claims by third persons and claims by employees.
Employer liability in cases involving a third party is based on a legal principal called vicarious liability. It provides that an employer is responsible for the harm caused by its employee if that employee was acting within the course and scope of his or her employment at the time that the accident occurred.
Plaintiffs often claim that an employer is directly negligent for its own conduct in encouraging or permitting employees to use cell phones for business without adequate training or consideration of safety issues.
Employers are now facing increasing claims by employees for health problems allegedly associated with cell phone use. This is happening even though the science appears inconclusive and contradictory. The issue regarding damage to a person who uses a cell phone will only be resolved by scientific study to come but, with the popularity of the "class action" suit by plaintiffs bar there will probably be litigation before there is solid science.
Workers who use cell phones while on the job have begun to file workers compensation claims and lawsuits based on the theory that radio frequency radiation from cell phones may lead to various forms of brain cancer or other maladies.
Training and a firm company policy help, but are not an assurance that a company will not be charged and held liable for the negligent conduct of its employees while they are using a cell phone.
--------------------------------------------------------------------------------
Policy Examples and Issues.
Considering all of the evidence we have presented here it should be clear by now that any company in which employee's use cell phones should have a clear policy and documented training.
Below are some liability considerations and examples of elements of existing cell phone policies:
On the extremely cautious side, some companies either strictly prohibit the use of cell phones for business purposes while operating a motor vehicle, or if necessary, require the use of a "hands-free" phone.
Cell phone policy should inform employees of the potential health risks associated with the use of a cell phone, and even suggest or require using a hands-free phone.
Some companies could require, as a condition of receipt, that the employee sign an acknowledgment that these phones are not to be used while operating automobiles or other equipment.
Company owned cell phones may carry a sticker warning that the use of the phone while driving is dangerous and should be done only in an emergency.
Some policies require employees to take precautions such as dialing phones only while stopped or pulling off of the road before making or receiving a call.
(One can wonder if an accident happened on the side of the road whether there would be a lawsuit claiming the company shouldn't have made the employee pull off the road!)
A policy may require training on cell phone safety. A brief training session or a simple booklet may be a good way to answer any questions asked by employees.
Employers should maintain documentation, including written acknowledgements of their company policy, from employees when they are issued cell phones or related equipment. All training should be documented and records kept in personnel files.
Employers who reimburse employees for business calls made from their cell phones may require employees to certify that they did not use the phone in any way that violates company policy. Such certification can be added to the reimbursement form.
Policy could state that any violation of subjects the employee to disciplinary action. It should be demonstrated that the employer is serious about this issue.
Policies should be firmly enforced.
--------------------------------------------------------------------------------
Summary.
It has become increasingly important for employers to establish a firm policy on cell phone usage related to employment.
Litigation in this area will only increase.
Even though there is no guaranteed defense to liability in any situation, an employer with a strong cell phone policy will be in a far better position legally than the employer who has no policy.
And finally, not only should there be a policy, but it should be documented, disseminated and strictly enforced.
___________________________________________
The Contents of this News Letter are intended for general information
and should not be construed as legal advise or opinion.
Please view our Website Disclaimer Page on our website
______________________________________________________________________________________________
Copyright 2008 Highway 2 Success
Business Development Training & Workshops
- Neil Fiore: Author, speaker, and trainer on managing business
_____________________________________________________
Welcome to Highway 2 Success!
Dear Friends,
In the business world, May brings the recognition of World Trade Week. This is especially important to those of us on the West Coast. For this reason, our May training will give focus to the international aspects of business. And as in the past, you will also find our Business of the Month article, business tips, and upcoming events, along with our new F.Y.I column that discusses current business issues in the news. Be sure to read through the information, and we look forward to see you at the meetings!
Please feel free to contact us with your comments or questions - and of course let us know if you would like to offer a discount to our readers or be the Business of the Month in one of our future issues!
For information on available training topics, please visit us at https://www.hwy2s.com/Entrepreneurial_Training.html.
What's Coming Up...
Our May training series:
20 WAYS TO FUND YOUR BUSINESS
With changes occurring in the venture community it is harder than ever to fund a company. Why is this happening and what can we do about it? Learn more than 20 ways you can find funding for your business.
Stephen A. Burgess is CEO of Corporate Toolbelt, a premier provider of business advisory services and interactive training workshops. He is a noted speaker, #1 best selling author and currently serves on several Boards of Directors. Steve is also Managing Partner of Smart & Sticky. He is known as 'The Business Prophet' for his ability to maximize client's profits, growth and valuation!
Discover more at www.thebusinessprophet.com or call (949) 831-7136.
*******************
BUSINESS OF THE MONTH
C Young Consulting
After serving as the CFO of a $275M high growth corporation and working as a teacher trainer for over 25 years, Mr. Carl Young opened the doors of C Young Consulting 15 years ago. His broad base of knowledge and experience in Finance and Accounting, and his ability to make this subject simple for the non-financial business manager/owner made this career a perfect fit for him. Mr. Young has a tremendous passion for teaching and training, and helping others understand what is felt to be a complex topic.
When choosing an accountant, Mr. Young suggests making certain considerations: 1) Does the Accountant understand your business? 2) Can the Accountant speak and express items and issues in a language that you can understand? Be sure to have open communication with your Accountant. When dealing with specific items and issues ask the Accountant:
¨ What does it mean
¨ What should I do given the circumstances
¨ What would you (Accountant) do
When asked what he especially enjoys about his work, Mr. Young enthusiastically responds "Dealing with People and helping them understand Finance & Accounting. I am a People person! The title of my book is Carl Young's Rules of the Business Game-It's All About People! Thirteen Rules to succeed in business based on my personal experience. This is my chosen field and I enjoy it because it deals with and relates to People!"
C Young Consulting provides a wide range of services to its clients, including Business & Motivational Presentations, Business Coaching, Webinars, and Consulting on accounting processes, procedures and systems.
What sets C Young Consulting services apart from its competition is their approach - their basic brand is Finance & Accounting Made Simple! The topic is kept simple for non-financial professionals. Mr. Young has a strong proven track record and confidently states "I have proven talents and expressed results in this. I have a broad base of experience in all phases after being in a company that started as $10M and increased to $275M. I started as Chief Accountant and rose to Chief Financial Officer. I am a high energy entertaining trainer. I use lots of wit, wisdom, anecdotes and stories from my experiences to make lasting relevant points. I guarantee all attendees learn from my session in a very relaxed and pleasing atmosphere."
Contact Information
CARL YOUNG
(404) 244-7924 Phone
(404) 244-6358 Fax
www.cyoungconsulting.com
"Lots of people reading this will instantly and vehemently disagree that Finance & Accounting is Simple! I firmly believe it is! I have made this claim for a long time. It is my brand as a teacher/trainer. I have taught and trained in finance and accounting for over 25 years in addition to serving in senior level finance & accounting positions. I can hear you saying it should be simple to you! I can't argue with your logic.
Finance & Accounting being simple to me because of experience is one dimension. My ability to make it simple for others is an even greater gifted dimension.
My claim is, Finance & Accounting is Simple if Made Simple! This is not a myth it is a meaning. My years of training have been devoted to making it simple for non-financial professionals and entrepreneurs. I have been very successful in this effort with a unique ability to make this topic easy to understand and apply.
Attendees marvel at my ability to help them overcome their fear of what is believed to be a difficult topic to learn. I provide lively, energetic presentations laced with wit, wisdom and humor aimed specifically at non financial managers and entrepreneurs.
Attendees walk away from my sessions with a basic knowledge of the essential fundamentals of finance & accounting. Included are easy to understand tools & techniques that can be applied in their business pursuits. Yes, I did say humor. Some consider humor from an accountant, an oxymoron. My natural sense of humor makes for a very relaxed learning atmosphere which enhances the learning process.
This is all done in a minimum of three hours. I make Finance & Accounting Simple! That is not a myth it is a meaning! I guarantee it!"
Carl L Young, MBA
Expert Trainer Finance & Accounting
***********
Outline of C Young Consultants
Training Program
ACCOUNTANT FOR A DAY!
On-Site Only
Length: One Day Financial Training Seminar
Number of Participants: Up to 30
Materials : Comprehensive Workbook provided
Follow-up Monitoring: No-Charge MVP six month follow up program. Attendees may contact trainer for finance seminar relevant questions by email or phone for six months following presentations.
Non-financial personnel wonder about the seemingly mysterious world of accounting. Accountants speak a language known only to accountants. Yet, this language of business is essential to non-financial personnel. Non-financial personnel shy away from accounting due to the fear that is complex and difficult to understand. No one believes it is simple!
Accounting is Simple if Made Simple! This is not a myth it is a meaning. This one day session allows attendee to become Accountants for a day to explore and examine the essential framework, fundamentals, tools, techniques, methods and models of the unique and simple world of accounting.
This session is not intended to make attendees into accountants. It is designed to help non-financial personnel understand enough about accounting in one day to provide a working knowledge of this language of business in simple easy to understand and apply terms.
The Trainer has over 25 years of accounting training experience in addition to senior level finance & accounting positions as CFO of a 275M high growth organization. His brand is Finance & Accounting Made Simple! He guarantees to make this training simple to understand and apply for non-financial personnel. This session is delivered with high energy with lots of wit, wisdom, anecdotes and humor from past experiences of the trainer.
You will learn in this exciting day of training:
· Accounting framework and fundamentals-Accounting is an art vs. science and guided by concepts and principles called Generally Accepted Accounting Principles (GAAP)
· The big picture of how transactions are transformed to financial statements
· Accounting concepts used as the framework
· Accounting principles applied to transactions and financial statements
· How accounting principles are essential for understanding the language of business
· The Language of Business -The financial status of a business is expressed in three traditional statements
· Balance Sheet-Ongoing record of financial health which shows what is "Owned" "Owed" and "Equity"
· Income Statement-Record of profit or loss for any given period as the difference in Revenue and Expenses
· Cash Flow Statement-Sources and Uses of funds for:
· Investing
· Financing
· Operations
· Understanding and Analyzing Financial Statements-Statements are understood and analyzed using various ratios and calculations as a basis for making business decisions about the future of the enterprise
· Key ratios and calculations to determine and analyze liquidity, profitability, cash position, and capital structure
· How to use these ratios to make informed business decisions
· The Role of Cash Management is the successful management of a business-Nothing is more critical than cash and the ability of the enterprises to meet its obligations as they become due
· Cash is King or Queen depending on one's gender preference
· Computing Cash position and maintaining enough cash on hand to meet obligations
· Planning & Budgeting-Planning comes before Budgeting. Planning is about subjective variables and assumptions. Budgeting is about objectives and quantified variables. Plan first then budget.
· Tools & Techniques for planning and budgeting
· How to develop a plan and budget
· The relationship of planning and budgeting to accounting
· Internal Controls Processes & Procedures-Internal controls insure accuracy and confidence in the numbers.
· Why controls, processes & procedures are important
· Their role in maintaining the accuracy of the accounting system
· Sarbanes-Oxley governance requirements and their impact on enterprises
· Internal and external audit requirements and their role in accuracy of financial statements.
· Key Business Indicators and Drivers-Traditional financial statements show results of past operations. Key Business Indicators (KBI) or Drivers provide critical benchmarks to guide future operations.
· Determining critical success elements to enterprise operations
· Developing Key Business Indicators from financial statements
· Using Key Business Indicators to communicate financial information
· Computer Systems in Finance & Accounting-Accounting is performed on computers that usually integrate the entire systems in to one data gathering repository. All statements and relevant financial information are extracted from this repository.
· An overview of how this system works in conjunction with the budgeting system
· The challenges faced in a computerized environment for auditing and insuring the accuracy of data
· External and internal reporting requirements that must be customer focused
· The future of Finance & Accounting in a global and rapidly changing technology based economy
· New theories and concepts
· Principled Based Accounting
· International auditing and accounting standards
· Supply chain management in the global economy
· RFID & Cycle Counts in inventory management
· Survival in a struggling economy
· Facing the challenge of a global economy driven by technology
· Question and Answer and Roundtable discussion of entire session featuring questions and answers attendees have about finance and accounting.
A Tip From Our Experts
**************
TIPS FROM OUR EXPERTS
What are you doing to create exit value?
by Stephen A. Burgess
When it comes to creating or increasing a company's value there are many possible factors to consider. What most owners and entrepreneurs do not understand is the variety of factors and the manner in which they can affect them and significantly change their exit value.
These factors can be divided into 3 primary groups: financial factors, management factors, and product/service factors. Let's discuss the first group that every banker, equity firm, venture capitalist, etc. considers - financial factors.
The key financial considerations usually start with earnings and cash flow. There are several derivatives of these measures but the basic components remain the same. The more 'free' cash your firm can turn out together with strong EBITDA sets up a great foundation for a good exit. Other key components include your compounded growth rate and your industry's growth rate both present and forecast.
A company with great cash flow and earnings with a 5 year compounded growth rate of 2% and slow industry growth will not be valued as highly as one with less earnings but much higher growth in a vibrant industry. Why? Simple, the investors buying the firm can not leverage their money and get the return on investment necessary to justify a higher purchase multiple. One other key factor to mention is the amount of long term liabilities of the selling company; less is almost always better.
Management factors begin with the strategies being employed to grow and build the company. I find this area to be one of the weakest areas in most organizations. It is critical to have clear, concise strategies that are communicated throughout the organization. These strategies need to be supported by a detailed business plan that can be executed on a consistent basis. Most buyers do not want to have to study the marketplace and develop new and effective strategies.
A strong management team and independent board of directors can also add value to the company. This value can be enhanced by strong affiliations with suppliers, customers, joint ventures, etc. that a strong team and board can facilitate.
The third category, product/service factors, can also be critical in valuation. Having a strong brand and product position in the marketplace can raise valuation considerably. Try to have one or more products/services in high growth markets or those that are poised to grow in the near future. Also, be sure your company is not a "one hit wonder", that is, have more than one primary product or service. Diversity in product lines allows for stability and implementation of new products or services or variations of prior ones. Your market share is also a factor, having a dominant market position can allow the company to have stronger margins and profits and limit competition. Additionally, a firm possessing particular intellectual property, trademarks, or unique technologies can see gains in their valuation.
As you can see, these three groups can all significantly affect a company's exit valuation. When you consider all the factors mentioned, and others of lesser significance, it may seem overwhelming. How do you assess where you are in each critical area and how do you maximize your company's ability to deliver in each critical area?
Start with well-researched, winning, focused strategies that are implemented via an up-to-date business plan and a strong management team. You can 'manage' your market position and share, expand your growth rate, increase cash flow, create stronger affiliations, broaden your product positioning, and so much more by sticking to the fundamental building blocks of high exit valuation companies. I know, I built 4 consecutive high growth companies in 4 different industries while maximizing company valuation. You can too!
All materials are copyright © 2006 Corporate Toolbelt & Stephen A. Burgess. All rights reserved.
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F.Y.I
This is an article that we found fascinating, and felt our readers would also find interest in. We do not take any credit for it - please note the link to the actual website we found the article on.
From the website of Braun Consulting
www.braunconsulting.com
Cell phone litigation is one of the new types of litigation springing up all around the country. Whenever there is a vehicle or other type of accident and a cell phone is involved you can bet a law suit may not be far away.
If an employer provides cellular phones, or if cellular phone use is a necessary part of a job, then that employer can be liable for problems created by their employee's use of cell phones while driving or otherwise working for the employer.
Even if employees are not officially on company business, and in some cases not even making a business call, employers can still be held liable if an accident involves a cell phone provided or permitted by the employer.
Some States, Cities and Counties are enacting their own "negligent driving" laws relating to, among other things, cell phone use while driving in a vehicle. Since laws are different in different areas, and new laws being enacted on a regular basis, employers are often creating policies that universally cover any situations involving use of cell phones related to company business or on company time.
And, don't forget that employer's also have a duty under most all state safety laws as well as OSHA to take proper steps and establish policies that insure worker safety. That includes safe use of cell phones.
There is some validity to the concern for cell phone use while driving or working.
A 1997 study reported in the New England Journal of Medicine indicates that drivers are four times more likely to have an automobile accident while using a cell phone...even if it is one of the "hands free" type of phone.
With the current climate as it is, many employers are implementing cell phone policies. We will cover some of those in this article.
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Case Studies and Recent Rulings.
Some of the cases recently involving liability issues and cell phone use have had settlements for large amounts of money.
Consider the following:
One of the more notable cases involving use of a cell phone involved a Smith Barney stockbroker (Robert Tarone) in Pennsylvania who hit and killed a 24 year-old motorcyclist - a father of two. Tarone was driving and talking on his cell phone on the way to a non-business related dinner. The company did not provide its employees with cellular phones, and there was no evidence that the employee was using his cell phone at the time of the accident.
Mr. Tarone maintained that he was on the phone making "cold calls" when the accident occurred. Since other employee's testified that making "cold calls" on personal time (and even on a personal cell phone) was often expected of a stockbroker in order to contact hard to reach individuals, his employer was held by the plaintiff to have been liable.
The company believed that it could defeat the plaintiff's vicarious liability claim by showing that the employee was not acting within the scope of his employment at the time of the accident. However, the plaintiff also alleged that the firm was negligent when it encouraged employees to use cell phones without training them on the potential hazards and risks.
The firm decided to avoid the potential risk that an impassioned jury might make in a judgement, and awarded the victim's family a $500,000 settlement to assure that it would have a guaranteed cut-off on damages. No legal judgement was made in this case, but clearly a messy legal battle could have ensued from this large gray area of laws and liabilities concerning cell phone use by a company employee who had an accident while on the phone.
In this case a good written policy along with a procedure outlining safe operation of the cell phone would have strengthened defendants position that it was not liable.
In another case Dykes Industries of Little Rock lost a $20.9 million lawsuit for personal injuries sustained by a citizen in a car accident where a Dykes employee was using a cell phone at the exact moment of the accident.
Cooley Godward, a Virginia-based law firm, was slapped with a $30 million wrongful death suit where an employee of theirs was conducting business on her cell phone when she struck and killed a fifteen-year-old boy with her car.
The State of Hawaii agreed to pay $2.5 million as its share of liability for an accident involving a state employee who allegedly was talking on her cell phone when she hit a tourist from New Jersey and caused permanent brain damage to him. The state was found twenty percent liable for the plaintiff's injuries.
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Information on Employer Liability.
Some notable points on employer liability involving the use of cell phones are listed below:
Employers can be liable for problems or accidents created by an employee's use of cell phones while driving if a company provides the phones, or if cell phone use is a necessary or encouraged option as part of their job.
Employers can incur liability whether or not the call is personal or business related.
Risks fall into two categories: claims by third persons and claims by employees.
Employer liability in cases involving a third party is based on a legal principal called vicarious liability. It provides that an employer is responsible for the harm caused by its employee if that employee was acting within the course and scope of his or her employment at the time that the accident occurred.
Plaintiffs often claim that an employer is directly negligent for its own conduct in encouraging or permitting employees to use cell phones for business without adequate training or consideration of safety issues.
Employers are now facing increasing claims by employees for health problems allegedly associated with cell phone use. This is happening even though the science appears inconclusive and contradictory. The issue regarding damage to a person who uses a cell phone will only be resolved by scientific study to come but, with the popularity of the "class action" suit by plaintiffs bar there will probably be litigation before there is solid science.
Workers who use cell phones while on the job have begun to file workers compensation claims and lawsuits based on the theory that radio frequency radiation from cell phones may lead to various forms of brain cancer or other maladies.
Training and a firm company policy help, but are not an assurance that a company will not be charged and held liable for the negligent conduct of its employees while they are using a cell phone.
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Policy Examples and Issues.
Considering all of the evidence we have presented here it should be clear by now that any company in which employee's use cell phones should have a clear policy and documented training.
Below are some liability considerations and examples of elements of existing cell phone policies:
On the extremely cautious side, some companies either strictly prohibit the use of cell phones for business purposes while operating a motor vehicle, or if necessary, require the use of a "hands-free" phone.
Cell phone policy should inform employees of the potential health risks associated with the use of a cell phone, and even suggest or require using a hands-free phone.
Some companies could require, as a condition of receipt, that the employee sign an acknowledgment that these phones are not to be used while operating automobiles or other equipment.
Company owned cell phones may carry a sticker warning that the use of the phone while driving is dangerous and should be done only in an emergency.
Some policies require employees to take precautions such as dialing phones only while stopped or pulling off of the road before making or receiving a call.
(One can wonder if an accident happened on the side of the road whether there would be a lawsuit claiming the company shouldn't have made the employee pull off the road!)
A policy may require training on cell phone safety. A brief training session or a simple booklet may be a good way to answer any questions asked by employees.
Employers should maintain documentation, including written acknowledgements of their company policy, from employees when they are issued cell phones or related equipment. All training should be documented and records kept in personnel files.
Employers who reimburse employees for business calls made from their cell phones may require employees to certify that they did not use the phone in any way that violates company policy. Such certification can be added to the reimbursement form.
Policy could state that any violation of subjects the employee to disciplinary action. It should be demonstrated that the employer is serious about this issue.
Policies should be firmly enforced.
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Summary.
It has become increasingly important for employers to establish a firm policy on cell phone usage related to employment.
Litigation in this area will only increase.
Even though there is no guaranteed defense to liability in any situation, an employer with a strong cell phone policy will be in a far better position legally than the employer who has no policy.
And finally, not only should there be a policy, but it should be documented, disseminated and strictly enforced.
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The Contents of this News Letter are intended for general information
and should not be construed as legal advise or opinion.
Please view our Website Disclaimer Page on our website
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Copyright 2008 Highway 2 Success
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