How I Became a Millionaire as an Independent Consultant

Successful Independent Consulting

As an independent consultant, cash flow is erratic. I always had the cash I needed to make my quarterly tax payments, and at the end of the tax year I usually had about $25,000 to put into my SEP-IRA. (A For me it’s time with family and friends and traveling.

Due Diligence by Management Consulting Firms

Tom Spencer

The investment bankers assess current and projected future cash flows to determine how much debt they can take on, service, and pay down.

Don’t Drive (Your Business) Over the Curb

Martinka Consulting

Owners travel a road every day and their road has curbs. It’s tough managing 50 people instead of 15 or handling cash flow at a level beyond what the line of credit allows for. The wider the road the better. Last month I wrote about customer concentration, a dangerous curb that significantly narrows the road (decreases value). Another important one is growth, or the lack thereof. What are some of the common reasons for a lack of growth?

Fool Me Once Or Fool Me All The Time

Martinka Consulting

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. I get the feeling many people, even in my industry, don’t understand the difference between profit, Ebitda, and cash flow. Owner “perks” like cell phone, car, travel to conferences, etc. (as

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. Banks factor in a salary figure before they determine cash flow for debt coverage. In my world of small business buy-sell there are almost as many ways to inflate a business’s income as there are on Wall Street. Rarely is anything straightforward.

Improve Business with Technology!

Women in Consulting

Insperity Reveal – Insperity products are designed to provide pictures rather than statements to become an advisory tool for cash on hand, A/P, A/R, cc debit, COGS, equity. Business Travel. By: Renee Daggett.

Time to Short the US Dollar? Go Long Commodities?


Bunds will not be able to follow the re-pricing of Fed (away from early 2015 hike) and growth in the US (It’s not the weather) as Q2 gets revised back down to 2.25-2.50% and geo-political risk and lag of global earnings for S&P-500 companies reduces margin and cash-flow.

4 Assumptions About Risk You Shouldn’t Be Making

Harvard Business

“Two roads diverged in a wood, and I—I took the one less traveled by, and that has made all the difference.” Most executives know that the present value of an investment comes from projecting its cash flows and discounting those numbers into today’s dollars.

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. Supposed) personal travel, meals, etc. If the only way a buy-sell deal can be made to work is because of AAA, it’s probably not worth doing. AAA stands for: Adjustments. Assumptions. Add-backs. In the world of privately held businesses it is common that the owner’s goal is to pay as little tax as possible.

Every Fast-Growing Company Has to Combat Overload

Harvard Business

But by the 1990s it had run aground: It hadn’t properly developed systems to implement its growth strategy internally, and so that strategy broke down at dozens of points of execution on the front line—with customers, crew, staff on the shore and the company’s travel agent partners.