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Steve Marr Blog

Steve Marr's contributions
Category >> Management
Jul 16

Cash flow Is Different Then Profit

Posted by Steve Marr in Untagged 

One business owner told me, “I don’t worry about my profit and loss statement, I just worry about my bank balance. If I have cash in the bank, great, if not, bad.” While this may be a simplistic perspective, cash flow may be more important then how much income you report. 

A critical part of any business is cash flow. Every business either generates cash or consumes cash. Business owners and managers need to understand every component of a business and how cash flow is affected.

One business owner was investing to build inventory. They were holding around $500,000 in inventory, very high for the business. The income statement showed a profit that year of $55,000.00, but the business experienced negative cash flow of over $200,000. They were literally running out of cash. I encouraged them to replace less inventory when sold, and over 6 months were able to increase cash by $150,000.00, enough to stay out of trouble.

Jul 04

A Consistent Game Plan

Posted by Steve Marr in Untagged 

Jun 01

When A Major Mess Hits, Get To The Core Issue

Posted by Steve Marr in Untagged 

When we have a mess to fix, what we need first is facts--a clear understanding of the issue. 
Paul gave us an example and wrote, "Every fact is to be confirmed by the testimony of two or three witnesses" (2 Corinthians 13:1 NASB).

Above: Someone forgot the door window.

Jun 01

When Issuing Instructions and Directives Ask For Prompt Implementation

Posted by Steve Marr in Untagged 

When you issue instructions, establish a timetable to follow-through; otherwise, delays may blunt the effectiveness of your plan.  The Lord spoke to Ezekiel and said, "None of my words will be delayed any longer" (Ezekiel 12:28 NASB).

Outline your plan or action items, issue your instructions, in writing if necessary, and be clear when follow-through is expected. 
Your idea of prompt, quickly, ASAP or soon may be different then another’s understanding of these terms.

May 14

Working Through Staff Concerns and Complaints

Posted by Steve Marr in Untagged 

Often, staff members may become exasperated and frustrated and begin to express general complaintsA woman was expressing sorrow at her great distress, and Elisha asked, "What shall I do for you?" (2 Kings 4:2 NASB).

When complaints come, ask the person to define the issue, and tell you what is exactly getting them down. We don’t need to be defensive, we are just looking for valid information.