Motivating Employees

IMG_0983Motivating employees is one of the most important, yet often overlooked, function of running a company.

Studies and research have shown that money is not the top motivating factor for employees.
What motivates employees the most? A sense of feeling needed, appreciated, and belonging to the corporate team. Most people are defined by their job and they also spend more time with their fellow employees than they do at home with their families.

So armed with this knowledge, the business owner and/or the management team must find methods to get the employees motivated and dedicated to the mission of the company. If you are successful in making this happen, the company will benefit as a result. I believe in open dialogue with employees, even to the point of disagreement among two or more parties. If managed correctly, the ability to express frustration either with each other or with the company, provides a forum to openly address issues.

I also like to hold creativity meetings where employees can use their creative abilities to assist the company in becoming an even better performing organization. This helps employees build an emotional attachment to the company, thus creating a non monetary investment in the company. By providing an open environment which enables employees to vent and be creative, you are building a team which will take your company to new heights.

By using the above suggestions, you are showing your employees that you care about them and that you value them as people and partners in your business. The atmosphere and work environment will change, and now that you have motivated and engaged employees, your company will have formed a strong internal shell. If times become tough, it won’t only be you who is in the battle, you will have an army of support.

Now, what about that raise?

If you would like more advice, please contact us at net or call us at 3306202761. We don’t just consult, we solve problems.

Cost Management and Reduction

Cost management or cost reduction are commonly seen as cutting budgets, doing less or downsizing. We see it differently. It’s about finding and removing waste, getting to know your business, and actually spending more time on the areas of your business that matter.

There seems to be a never-ending cycle of corporate mandates to achieve greater profitability, while using fewer resources. As management teams succumb to this added pressure, managers often resort to drastic measures in achieving this goal. Their answer tends to be, eliminating or trimming budgets, cutting critical programs or downsizing.

Most cost reduction programs or initiatives actually have a negative effect and tend to erode top-line performance, or place strategic objectives at risk. While others are simply not obtainable or sustainable. We educate our clients that it’s not just about reducing costs, it’s about cost management. Cost management is simply a strategic attempt to review and improve business operations, products, and processes. Cost management is not about doing less, it’s about being able to do more in key areas, increase capabilities, and in making better informed decisions that will drive your competitive advantage and enhance top-line growth.

We recommend a different approach to cost management. To create sustainable value, we believe that companies must look beyond short-term budget reductions. Short-term reductions tend to solve the current problem, but long-term, they reduce shareholder value and reduce the company’s ability to create sustainable business growth.

We help our clients to view cost management from an operational, transactional, and strategic perspective. We work with our clients to identify new ways to make business changes, achieve savings, and create an atmosphere of cost consciousness.

To learn more about cost management and cost reduction, please contact us at 330-620-2761 or visit our website at, net



Making A Difference, One Business At A Time

Time for changeNo matter how long you have been in business, you will eventually need to change your operations. In fact, the best businesses are constantly innovating to adapt to the changing world around them. These changes could encompass anything from hiring new members of staff to raising your prices, or planning for growth. [Read more…]

Startup Cash Management

startupStartup companies often find themselves in a negative cash flow situation during the early years of operations. Owners focus on growing their business, despite overhead and operating costs which are generally  greater than  the revenue that they generating for quite a while. This is a normal situation for many startup companies but an unsettling one nonetheless.

Finding themselves in the position of having to make up for diminishing operating capital, startups typically look to one of several funding sources—from bootstrapping or traditional business loans to investor seed money and venture capital—to keep them afloat while waiting for their revenue to increase and reach profitability.

Yet, convincing a  funding source to get or remain involved is not  simple and many startups struggle to explain their financial situation or capital needs. What startup companies really need—and often lack—is a clear understanding of their burn rate and the reasons behind it. In short, they need to learn how to keep their burn rate from burning them.

What Is Your Burn Rate?

A startups burn rate is, in its simplest form, your expenses less income. It is the rate at which money is flowing out the door, offset by any revenue coming in. Ultimately, a good measurement of your burn rate will give you a better picture of how long you can continue to operate at the same level without needing to raise additional funding. On average, investors expect each segment of funding to last from a year to 18 months. If your burn rate indicates you won’t meet expectations, you might run the risk of not receiving future funding.

Startup companies can face trouble many ways during their startup period, not least of which is simply running out of cash. While this is sometimes inevitable or unavoidable—perhaps the startup is just not viable or there isn’t enough interest among investors—many times it is a result of an inaccurate financial picture. There are several reasons for this happening, all of which have fairly simple fixes.

Managing Your Cash

Managing your burn rate relies on a mix of several practices, starting with proper financial understanding and reporting to alternatives to direct cash outlays.

Financial Best Practices:

  • Review your burn rate (at least) monthly to make sure you have a clear financial understanding.
  • Manage your burn rate daily to ensure adequate control over expenses.
  • Track and code every expense as they occur.
  • Record and assign revenue to the appropriate calendar month—this is especially important if you sell anything that spans multiple time periods, such as an annual license or a monthly membership.
  •  Anticipate future large cash outlays so you aren’t surprised by a jump in your burn rate in the future.
  • Reduce time and money spent on operational and administrative activities by hiring virtual or outsourced employees, such as bookkeepers, administrative assistants and even legal support.
  • Be patient and prolong taking your product to market. The expense to hire and manage sales staff and marketing will be wasted if your product isn’t ready yet.

By employing a mix of financial best practices as well as exploring alternatives to larger, more traditional expenses, you can ensure that your startup is a lean operation with a manageable burn rate which will give it a greater chance of successfully going to market. The slower your burn rate, the greater likelihood your startup receives funding, gets to market, and becomes profitable.

At Net Profit, one of our specialties is helping businesses manage their finances while the company moves to the next level in its maturation process.

Whether your company is a startup or a mature entity, we are cash flow experts, contact us at 330-620-2761.


Implementing Change In Your Company

stock-photo-18932053-time-for-changeTo successfully implement change in an organization, Chief Executives need to be effective communicators. The following is a list of things to consider while the organization is going through this process. [Read more…]

Let Us Be Your Accounting Department


So you have taken the plunge and established your own company, hired a professional to create your brand, rented an office and hired your team. But to save costs you are doing your own accounting to save money.

As the months go by, your business is requiring more of your time and yet you are stuck at your desk on evenings and weekends working on your accounting. The driver of your business, YOU, is now playing the role of an accountant. Your time which can be used to generate sales, motivate staff and inspire new customers is consumed with spreadsheets and data entry.

Sound familiar? Many new businesses see the accounting function as an unneccesary expense within the business. Its only a couple of spreadsheets right?

Wrong. Managing your accounting and cash flows are crucial to your company’s success in the start up years. Knowing where every cent is going, managing cash flows, calculating risk, planning for growth and delivering your product on time at the right price are the areas that if managed well, can ensure you have the greatest chance of success.

Taking on this function on your own may seem like a great idea as you will certainly know where the money is going but what about driving your company sales, networking and generating business relationships. The business owner is generally the number one driver of the business and its sales team. But to perform that role properly requires your full time and attention.

Net Profit, Inc. has developed an accounting system for you which enables you to focus on your business while we focus on your numbers. Our system is so easy to work with that you will wonder why you didnt work this way from day one.

Net Profit, Inc. will establish a cloud accounting system for you. We give you access and log in details to view your accounts any time. Your role is easy. Simply scan your sales and purchase receipts into our cloud and our qualified accountants will prepare your daily sales ledgers, P&L accounts, Cash flows and sales reports. We establish the desired reports that you need, and  then we deliver them to you on time evey time.

How much does Net Profit, Inc. charge for our Cloud Accounting?

Net Profit, Inc. will evaluate your goals and establish a pricing structure to suit business and allow you to grow. Our objective is to ensure your financial stability and be with you as a long term accounting partner.

The benefit of using Net Profit, Inc. as your accounting department, includes no hiring fee, no payroll tax costs, no holiday pay, no sick days, as a matter of fact, no paid benefits of any kind. You simply pay us for the work completed. This allows businesses to grow with a low cost accounting solution and work without the headaches associated with managing the company accounts.

To discuss your accounting requirements, contact us at 330-620-2761 or visit our website

Profit And Cash Flow Improvement

Cost Management is normally defined as slashing budgets and/or doing less. But, we see it differently. It’s actually about spending less, while shifting your focus

Source: Profit And Cash Flow Improvement

My Damn Bank Won’t Work With Me

new-york-631577_1280If you have been denied an increase for your credit line, after you yell, scream, and swear, take a step back and relax. While you are understandably upset, you need to compose yourself in order for you to analyze the situation and come up with a plan of action. [Read more…]

What reports should I review each day as a business owner?

OLYMPUS DIGITAL CAMERAI review three reports each day: Cash, Accounts Receivable and Accounts Payable. If I had inventory I would also review the inventory report. [Read more…]

Don’t Hand Your Employees a Blank Check

Success Starts Here Freeway Style Desert LandscapeNot having a purchasing procedure is like handing your employees a blank check. While this may seem like an exaggeration, when you think about it, it is not the case at all. [Read more…]