Remove Cash Flow Remove Insurance Remove Marketing Remove Travel
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Fraud or Just Marketing

Martinka Consulting

What this means is the owner’s salary, medical insurance, cell phone, car, travel, and more are added to profit because these items are “discretionary” not necessary. The bottom line is someone has to run the company and whether it’s the owner or a hired gun they deserve to be paid a fair market salary for that work. Bob Marley.

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The Corona Virus for Small Businesses

Consultant Journal

It’s a question on the minds of many entrepreneurs, as Fortune 500 companies announce new protocols for travel, meetings and even use of coffee cups. Think about what’s actually needed for your sales and marketing : Wave or nod instead of shaking hands. Take a look at your cash flow and what a change to sales or staffing could do.

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Fool Me Once Or Fool Me All The Time

Martinka Consulting

This goes back to before the stock market crash of 1929. A 1932 research paper showed firms had loaded up with cash and post-crash, “companies were flush with cash and investors beleaguered,” which they wouldn’t pay out. Zweig writes that any form of modified profit isn’t cash flow. Medical insurance expense.

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AAA – Not to the Rescue

Martinka Consulting

When it comes time to sell however, they want to demonstrate that the business has more cash flow than the tax returns (and financial statements) show. Some of these adjustments are easily justifiable, such as adjusting the owner’s salary to market rate or if the seller owns the real estate and pays more than market rent.