Dream Focused – Business Minded

March 2019

“Ultimately it’s all about cash flow”

Blog, Financials / By

“Ultimately it’s all about cash flow” by: Fred Burmont

OK, you are in business but now you have questions:

  • Why do I not have any cash since my business has profits?
  • How much can I take as my “paycheck” from my company?
  • Can I afford to hire some help?
  • What are my most profitable products (or services)?
  • How much do I need to sell to break even?
  • What do I need to do to increase profits?
  • Do I need to get a loan or line of credit?

Since 2014 I have had the opportunity to assisting more than 500 Larimer Small Business Development Center (SBDC) clients to understand their business financial statements and better manage their business finances.

As an experienced CFO, and former small business owner, I know that of the three basic financial statements, the Cash Flow Statement reflects the “life blood” of the business and that sufficient ending cash balances are the key to a healthy business.

The Cash Flow Statement (Statement of Sources & Uses of Funds) can be derived from the historic accrual-basis Balance Sheet (Statement of Assets, Liabilities and Owner Equity) and the Income Statement (“Profit & Loss Statement”).  However, I have found that many small business owners are not familiar with accrual-basis accounting–but they do keep track of their bank account on a cash-basis.

Therefore, my approach is to assist our clients in using their operating cash (checking) account as an intuitive way to plan the cash flow of their business.

I have developed a MS Excel spreadsheet “Biz Cash Flow Model” as a tool to project cash flow and ending cash balances on a monthly basis—in parallel to the business’s monthly bank statements.  There is a version for “Products-type” businesses, and one for “Service-type”.

The “Biz Cash Flow Model” is available to use free of charge by any of our SBDC clients.

Fred Burmont
Certified SBDC Business Consultant
March 27, 2019

Frederick J. (“Fred”) Burmont, a semi-retired former Chief Financial Officer (CFO) and former Colorado-licensed Certified Public Accountant (CPA) with more than 40 years’ financial management experience.  Since 2014 he has provided his services as a Certified Business Consultant for the Larimer County, Colorado Small Business Development Center (SBDC).  He specializes in assisting clients to understand, plan and manage their business finances.  He has helped clients to develop Business Plans and cash flow projections. 

s of 3/1/19 he has conducted 829 consulting sessions for 512 SBDC clients.

Previously Burmont served 5 years as the Vice President of Finance for Upstate Colorado Economic Development a not-for-profit agency devoted to supporting economic development and job opportunities in Weld and Larimer County communities. His responsibilities included managing the Weld/Larimer Counties Revolving Loan Fund, a federally-funded financing program for small businesses.

He has 25 years’ experience as a corporate finance officer including 15 years as part-owner and Financial Vice President of Chaparral Industries, Inc. a metal products manufacturing company headquartered in Denver.  He served as the CFO, responsible for all financial, strategic planning, accounting, budgeting and cash management functions.  The company grew from 10 employees and    $1 million in annual sales to 93 employees and $14 million in sales over the 15 years.

For 6 years he served as Senior Business Manager/Division Controller for Knowledge Interact, a division of Soft Bank Group/Comdex, and for 4 years as Vice President of Finance & Administration for Staodynamics, a publicly-held (NASDAQ National Market) manufacturer of FDA-approved transcutaneous electrical nerve stimulation medical devices.

A native of Colorado, born and raised in Denver, he is a graduate of the University of Colorado with a BS degree in Business, majoring in Accounting and Finance, and the University of Denver, Graduate School of Business Administration, with a Certificate in Marketing Research. 

4 Big Ideas for Selling Your Product Online

Blog, Marketing/Sales / By

by Sari Kimbell

Ecommerce is one of the areas I get asked a lot about when I work with food businesses. It is tempting to think that if you just build it they will come and then a month or two later they are wondering why product isn’t flying of the digital shelf.

I knew I wanted to dive into this topic more and go over the high-level ideas around setting up an ecommerce store and choosing the best platforms for your type of product.  Since this presentation was part of Artup Week, my goal was to keep the presentation broad enough for artisans of all kinds making a physical product they wanted to sell online.  I was so fortunate to connect with Ben McConnell of Blue Parable who specializes in helping clients set up and see success in the world of ecommerce.  We got to work last December to map out the ideas and I quickly realized that I needed to take my own advice that I give to my clients and turn it over to an expert.  I know a lot about ecommerce, at least enough to be dangerous, but Ben is THE expert.

With only 45 minutes, we broke it down to four big ideas we wanted everyone to come away with

  1. Myths of Ecommerce
  2. Opportunity is Big
  3. 4 Platforms to Know
  4. Your Business is Unique

My favorite part of the presentation is around the myths of ecommerce. I see clients fall into both of these a lot.

  1. An ECommerce business is cheaper to operate than a brick and mortar business
  2. An solopreneur can make millions of dollars selling online

The reality is that no one can really operate as a true solopreneur, doing everything well, at least not for very long. I thought this slide illustrated all of the things an ecommerce entrepreneur needs to do. This just reinforced the theme that came up for me throughout Startup Week is that you can’t, and shouldn’t, go it alone.  Get expert help and focus your resources on doing what you are really good at.

The other takeaway is just how big the opportunity is.  But you have to find your customers by being on the right platforms and investing in your business with some marketing initiatives.

We did record the presentation, but it isn’t “mic’ed” so it is a little hard to hear. You can also get the handout we gave out here or get the whole presentation here.

Following the presentation we had a panel discussion with Ben, Charity of TechKnow and also an ecommerce business owner and Lukas Matthews of Twin Scroll Marketing, an Amazon optimization service.

I am also including some links to articles I have read recently about selling on Amazon that may be of interest to you:

Pie Shell Blog here about selling on Amazon

Amazon pushes for more exclusive products here

QuickBooks for Small Business Owners – Online and Desktop Versions

Blog, Bookkeeping/Accounting / By

by  | Apr 10, 2018 | Business Advice, QuickBooks, Workshop Blog Posts

QuickBooks for Small Business Owners – Online and Desktop Versions

QuickBooks for Small Business Owners - Online and Desktop Versions | Digital Workshop CenterQuickBooks for small business owners is recognized as an industry leader in accounting software, helping you keep track of bookkeeping, inventory, payroll, expenses, sales, and more. QuickBooks not only provides easy ways to manage accounting, it also offers marketing solutions, real-time reporting, year-to-year comparisons, data tracking functions, and more. QuickBooks should be at the top of the list for business owners and those seeking to upskill their accounting resumes of programs to learn and understand how they function.

One of the first steps to learning QuickBooks is to understand the different program levels and available versions of the program. QuickBooks offers both an online and desktop version of their program, as well as different membership levels depending on what features you want the program to have.

To help you decide which is best for your business, understand the main differences between the QuickBooks online and desktop versions: 

    1. Fees: Quickbooks online offers a free 30-day trial period; while the desktop software must be purchased before use. Desktop has a one-time upfront cost, but the online version has different monthly pricing levels depending on use and needs. The desktop version may include upgrade costs to meet your business’s complete needs. Determine what your QuickBooks will need to do and how you or your business will be using the software before deciding.
    2. Access: QuickBooks online is a cloud-based software, meaning as long as you have a good internet connection, you can access your books anywhere, anytime. QuickBooks desktop, on the other hand, is only available on the computers it is installed on.
    3. Program Functions: The basic functions of QuickBooks online vs. desktop are the same in terms of invoicing, accounts payable and receivable, and so on, but the online version actually provides more included features than desktop. Compare the features of each here.
    4. Support: The online version of QuickBooks comes with free support; the standard desktop version does not have included support unless you upgrade to the Pro Plus edition.
    5. Customizability: Both the online and desktop version of QuickBooks offer some degree of customizability. However, if your business must account for calculating and rebilling of job costs or needs to calculate discounts by customer, the desktop version is the only of of the two that can currently do so at this time.
    6. As with anything, both the QuickBooks desktop and online versions each have their own high and low points. QuickBooks Desktop makes sense for businesses who are concerned with the following:
      1. Security: If you want to keep your data off the cloud and only in your office, the desktop version may be best for your business.  
      2. Simplicity: If your business has a fixed office location and only needs to give access to a handful of users, desktop might right for you.
      3. Costs: To avoid the monthly recurring fee, desktop is the only answer.
      4. Custom Features: If your business needs to include customer discounts or complex job costing, the desktop version is a better choice.

QuickBooks Online might be right for businesses needing:

  1. Remote Access: If you need to access your books at any point, anywhere, the online version is better able to meet this need.
  2. Multiple Users: If your books need to be accessed by multiple people at the same time, the online version is better able to handle this.
  3. Support: If easy-to-access support is important for your business, the online version provides more support options.
  4. Features: The online version offers more included features for users in terms of automation, applications, and the like.

Regardless if you decide to utilize the online or desktop version of QuickBooks, having a deep understanding how the program functions is valuable for your small business or accounting career. If you’re ready to learn more about QuickBooks and it’s features and how to effectively use it, consider taking a course at the Digital Workshop Center. We offer classes for both the online and desktop version in a group setting or in a one-on-one basis in Fort Collins and Denver, Colorado. By joining us for our QuickBooks classes, business owners will  learn the skills you need to successfully manage your small business accounting, how to optimize both the online or desktop QuickBooks versions, generate critical business reports. Applicants will learn the skills necessary to succeed in an bookkeeping or accounting job. Learn more about the QuickBooks classes offered at the Digital Workshop Center and register today!

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Front Range Community College

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Blanca Peak 151
Fort Collins, CO 80526

Ph: 970-204-8600

info@larimersbdc.org

Colorado-SBDC

Small Business Navigator hotline: 303-860-5881
Email: SBDC@state.co.us
Website: https://sbdc.colorado.gov/

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The Colorado Small Business Development Center Network is a partnership between the State of Colorado, Colorado Office of Economic Development and International Trade, the Small Business Administration (SBA), Colorado’s institutions of higher education, local economic development organizations and local chambers of commerce. Funded in part through a cooperative agreement with the U. S. Small Business Administration.

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