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Profit Leakage Calculator: Diagnose How Much Profit a Business is Losing

ConsultX

They are seeing first hand how many opportunities are being missed to improve profitability and cash flow just from existing operations alone. In 2016, ConsultX launched a Business Consulting Software, with a specific portion of the application dedicated to calculating Profit Leakage.

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Martinka Consulting - Untitled Article

Martinka Consulting

A December 2, 2016 Wall Street Journal article was titled, “ Car Sales Roll Along; Aided by Discounts.*” The gist of the article was sales are up over the same month a year earlier and the average discount was 11%, versus 9.4% He knew cash flow. Or should we say he knew short-term cash flow.

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The End-of-Quarter Sales Rush Costs Companies Money

Harvard Business

Ask any organization what’s happening in the sales department on the last few days of the month and the entire last week of any fiscal quarter. Sales teams are closing deals, at all costs. million sales transactions from the anonymized data of 151 U.S. companies over nine consecutive quarters (Q1 2014 through Q1 2016).

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Forget Startups – Buy a Business

Martinka Consulting

Using statistics from BizBuySell.com the article stated the median price of businesses at the end of 2016 rose 8% from 2015 to $216,000. Richard but in a sales system and culture, which attracted customers and high-quality employees. But first, let me take issue with one of the facts mentioned. Have a 100-day plan.

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Strong Economy – Strong Buy-Sell Market

Martinka Consulting

Record number of small business sales in 2018! More businesses sold after being advertised on bizbuysell.com than any other year, and 2017 was 25% higher than 2016. PriceWaterhouseCoopers – Two-thirds of companies with sales of $5,000,000 to $50,000,000 will change hands in the next 10 years (2011). Pretty small.

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What GE’s Board Could Have Done Differently

Harvard Business

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. Because of these dubious decisions, GE’s ratio of debt to earnings has soared from 1.5 in 2013 to 3.7

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How Incentives for Long-Term Management Backfire

Harvard Business

Another company, in the agricultural technology sector, chose free cash flow as the primary long-term incentive measure. Facing headwinds to growth, executives delayed R&D and capital investments to hit three-year free-cash-flow goals. Eventually, the company’s share price nosedived.