Jack Welch couldn't have said it better in an interview for the Financial Times. For all the talk in the media about shareholder value, it's a good time to remember this simple mantra. Do the right things by your constituents - employees, customers and suppliers - and long term shareholder…
WSJ recently carried an article, Seven Lessons for Leading in a Crisis. Here's my short version, which is consistent with the advice I'm sharing with clients every day and sharing during public speaking events. Get real! Get rid of the rose-colored glasses. Build cash (maybe next time). Be transparent; get…
This is the title of a recent blog entry from James Surowiecki's blog on The New Yorker. He poses an interesting notion that banks will be doing better than ever with rates so low - Wells Fargo average interest cost in Q408 was 1.44% - and spreads so high.
We're proud of the "Straight Talk. All the Time" mantra on this site. Jason Calacanis of Maholo.com and founder of Silicon Alley Reporter stays close to that line in his recent newsletter that BW republished. It describes his brutal experiences with the dot.com implosion and offers the hard cold facts…
The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.
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Article published – March 9, 2009
BUILDING A BUSINESS: Planning, pre-emptive explanation will help you with your bank
“Plans are nothing; planning is everything.” – Dwight D. Eisenhower
In the last column we discussed a few core principles about building a sustainable banking relationship. “No surprises” and “preparation” are two of the essential elements.
Now we move to planning. This is a broad subject with many variations, so we’ll focus on cash flow forecasting as an invaluable component of that process. While it provides an important tool for your banker, it must also be an indispensable part of your planning arsenal. Gen. Eisenhower’s comment focuses on the process rather than the result to emphasize that unexpected events and new information always make a difference.
Nonetheless, forecasting remains an elusive objective for many business owners. Most of the objections I hear are comments like, “I have no idea what our sales will be” or, “Who knows what will happen tomorrow let alone the rest of this year” or, “Our industry is in such a state of flux that no one knows what might happen.”
While these “Double V” economic times (big volatility and little visibility) make it more difficult than ever to predict and forecast performance, your bank will be remarkably unimpressed by these excuses. (more…)
Warren Buffet's Chairman's letter in the annual report of Berkshire Hathaway is always a good read and offers a glimpse into the mind of America's investment éminence grise. It has been extracted from the 100pp page BH 2008 Annual Report.
I reported recently on the trend toward cutting costs without cutting jobs. BW expands upon that concept focusing on mandatory vacation and voluntary leave. I have recommended that to several clients to consider offering unpaid leave to employees. I think you will be be surprised to learn that there are…
As usual, Jack and Suzy Welch are on target with their latest BW column, critizing the new Administration for various leadership "shortcomings". The valuable insight for business leaders is that "you gain nothing by showing uncertainty and indecision". In short, get your act together, probe the issues, work them to…
<The WSJ offers an inside look at how open book management and financial transparency have been used as valuable tools to help companies cope with the economic downturn. It may be more challenging to start this now, but the rewards can be plentiful and unexpected. More than anything, it enables…