For nearly 50 years, M&H Engineering has been providing high-tech manufacturing to a range of clients. A second generation has kept the firm forward-thinking, leading to a decade of 10 percent growth, year over year.
Is a net profit of $200,000 on an income statement good? Look at the ratios. If it's earned on sales of $600,000, it could be. But if sales were $2.5 million, then the ratio is certainly less appealing. So how can ratios best be used to map growth?
The products and services delivered by smaller companies have to meet or exceed not just those of their peers, but also those of larger corporations with greater resources. Because using a do-it-yourself approach isn't enough, businesses are using outsourcing to punch above their weight in critical business functions, including finance/accounting, IT, transportation and logistics, and procurement.
According to a recent survey by nonprofit American College, about a third of small business owners have no financial plan in place. Whether it's because these owners feel that the business will take care of them in the long run or simply don't have the time, the fact is that they have no solid plan for how they will fund the latter part of their lives. When you think about the reasons you started the reason your business in the first place—among them tom create wealth—the lack of planning takes on an even bigger dimension.