Friday, November 8, 2013

New Real Estate Market Among Other Things





If your radar picks up Richard Branson, Professor Behrokh Koshnevis, Lady Gaga, India's cost-saving ideas, and the Olympic torch, you may have noticed a pattern.  For those who are still lost, I'll throw in President Kennedy.

That's correct: the obvious conclusion is that we'll be starting an off-world colony soon.  No, I'm not suggesting we have the money, intelligence, man-power, and motivation to abandon Earth to escape pop music.  You can just turn off the radio.




However, Richard Branson's "spaceline" Virgin Galactic is scheduled to lauch it's first commercial flight in 2014.  You can join him for $250,000.  That may sound like a lot of money until you consider that no collection of resources in human history could get someone off the planet until the 1960's.  On top of that, a ticket gives you access to a lot of other perks like spending time with Richard Branson.  Book a ticket here!

Meanwhile, Dr. Behrokh Koshnevis, a professor of Industrial Systems Engineering and Civil Environment Engineering (his website) has been pushing more conventional boundaries.  He has developed 3D printing technology that can print full-size buildings.  See his Ted talk here for a more complete explanation.  The short version is that his technology can print a 2,500 square foot house in about 20 hours.  No labor, better materials.   Though it might cost as little as $250,000 to send a single contractor up to the moon, it would be a lot safer and cheaper to send up a machine that could handle whatever construction you need (including wiring, plumbing, whatever you like) without needing food or atmosphere.

If, however, you actually were hoping to escape modern pop, you'd better go now and enjoy what little time you've got alone.  In 2015, you'll have to share the vacuum with
Lady Gaga is set to perform a single in outer space (courtesy of Virgin Galactic) as part of the Zero G Colony music festival.  You can get info here.  Not all hope is lost for space though.  First of all, plenty of people like Lady Gaga and/or her music.  Second, it's pretty big.  You can go somewhere else if you need to.  More to the point, we're sending something a little more inspirational to space for the first time.  Though, it's been there before.
Since Prometheus first stole the fire thousands of years ago as Greek myth goes, we've come closer than ever to returning it to Apollo (the Sun god) as just yesterday the Olympic Torch was brought onto the International Space Station.  This article from BBC news reports that tomorrow it will be taken for an historic spacewalk (it won't be lit).

At the end of the day, however, even in the face of all this space traffic, the cost of travel is still prohibitive except to governments and people with a spare $250,000.  There may not be enough of them to warrant a colony.

My grandmother has been to all 7 continents and I don't know how many countries.  When I asked, she told me she wasn't interested in going to the Moon.  Why?  "There are no 5-star hotels on the moon."  Don't worry, Nanny.  Once we get basic Moon travel on the consumer market, luxury Moon travel won't be far behind.  The problem is, how can we manage that?  The answer for anyone willing to put in the effort: How can we not?

India just launched a mission to Mars that cost about $73 million (source).  The US mission MAVEN's budget is $485 million (source).  That's less than one sixth the cost to India.  According that NBC article, their payload cost is about one tenth that of the US.  India can send up 10 of Dr. Koshnevis's 3D printers for the price of one to the US.  That's 40 houses on the Moon less than 2 days after landing.  Alternatively, they could probably construct Lady Gaga's Moon Palace in short order as well.

The point is, as we perfect these technologies and keep pumping money and interest into space travel, it's going to get more and more practical.  India is already poised to make a killing on cost-effective space technology.  At this point, if you're not thinking of your industry in terms of space application, you're being short-sighted.

Tuesday, August 27, 2013

What We Can Learn from Neil Armstrong's Recent Death

You may have joined the nation today or yesterday on Facebook and Twitter in mourning the passing of an American hero.  Neil Alden Armstrong, the first man to set foot on the Moon, passed away on August 25, 2012.

Why, then, are there so many posts of a "RIP Neil Armstrong" nature?  The theory is that there was a misunderstanding about a post marking the anniversary of his death. (source)

Whether it was one misunderstanding or a series, there were enough people under the impression that Neil Armstrong had just died to get the "news" trending.





1.  People miss crucial details.

Maybe this happens a little more often on Twitter or Facebook.  The messages there don't get the same priority as business communications.  However, if you shoot someone an email the length of a tweet, don't make it something too important.

This goes for office communications as well as client communications.  ESPECIALLY client communications.  If your ads aren't understood correctly, that's lost money.  If there's a foul-up handling something for a client due to a miscommunication, that may be a lost client.

Take a little more time to make things clear, and explicitly address possible confusion.  When you say "on Wednesday" go ahead and add "the 28th" or "tomorrow".  Nobody's going to criticize you for being easy to understand.

2.  People forget things.

Yes, people should have remembered that Neil Armstrong had died, especially when posts mention that it was the anniversary of his death.  However it happened, they missed it, and they'd forgotten.  Some of you may be wondering how that's possible.  He's Neil Armstrong.  Other readers are wondering what the big deal is.

The fact is that people have different circles of interest.  Person A thinks it's incredible that Person B forgot about Neil Armstrong.  Person B thinks it's incredible that Person A has never heard of the Beatles.  Rolling out your newest product is big news to you, but it may not be on someone else's radar at all.  Even though you've been advertising half a year and have talked with this very person about it, go ahead and throw in a one sentence reminder.  "We're excited about relasing XYZ..."  "I hope to see you at the back-to-school party..."  Again, you've got nothing to lose.

Friday, August 9, 2013

Hint: The correct answer is 'yes'.

Here's a survey from HBJ's business pulse. I was thinking of answering "Yes, if they're comfortable." On further thought, it's really, "Yes, it's expected." If you're not comfortable on twitter or other social media relevant to your business, it's worth the time and effort to get comfortable. Twitter, for example, is a quick, free line of communication to your clients. What's better, it's a line of communication directly from them to you.

http://www.bizjournals.com/houston/poll/poll/12432862?goback=%2Egmr_4909800

Wednesday, August 7, 2013

Interfacing with my CPA – Support for Small Businesses

                 These simple questions will help you keep your CPA running smoothly no matter what model or version you’re using.

1.  Is your CPA plugged in?

                Ensure that your CPA regularly receives information about your business.  Your CPA is programmed to operate on whatever information it has and assume that information is current.  Make sure your business’s financial records are connected to your CPA.  If there are business related emails more important than daily activity, you might forward them to your CPA as well.  This will allow your CPA to record and report investments and other dealings promptly and even assist you in executing them if desired.

2.  Are you logged in correctly?

                Check to see that your CPA has all necessary information.  Your CPA will need certain information about yourself or your business in order to function properly.  Your CPA can tell you everything required upon request.  The information needed will vary depending on what your CPA is doing.

                Keep in mind that CPAs have different modes such as tax preparer, CFO, bookkeeper, and more.  Operating your CPA in one mode may require more information than another mode.  Again, your CPA can list all needed information upon request.  There may even be an unimportant looking email from your CPA on this subject sitting in your inbox.

3.  Are you running the correct mode?

                Make sure that you have engaged your CPA to function the way you want.  If you are having your CPA file reports with the SEC, the CPA will need several components, including a balance sheet, income statement, and cash flow statement.  These may be generated by your CPA or by yourself and then sent to your CPA.  Make clear to yourself and your CPA who will be producing these documents.

4.  Are you running current software?

                If you answered question 1 affirmatively, then this issue is likely taken care of by automatic updates.  Your CPA is regularly downloading everything needed from your business.  However, your CPA may encounter additional requirements, especially at certain times of year.  Should this happen, your CPA will prompt you for additional information.  Quick response is highly recommended.  Too much delay may result in your CPA freezing up, difficulty running programs, or, worst of all, an error, which often results in financial loss.


We hope this short list of common CPA issues was helpful.  Should you have further issues or questions, please visit http://www.clearfinancials.com/contact.htm, and we will be glad to assist you.

Monday, August 5, 2013

You are invited to a very special lunch and learn


What does your company dashboard look like?
Become fully informed so you can be more
competitive and knowledgeable at driving your business.
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A Very Special Lunch & Learn
Discover about the importance of using Key Performance Indicators in your business to drive profits and put more money in your pocket.
Uncover new facts about your business as you explore data.
Data exploration leads to discoveries, fresh insights, and a different perspective, and this won’t happen if you’re not prepared.
Find out how you can create a custom dashboard to harness metrics and KPIs to gain a strategic advantage in the marketplace.
Thursday, August 15th from Noon to 1 pm
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http://www.clearfinancials.com/kpi.htm | (713) 780-0806

Tuesday, July 2, 2013

Common Cents Newsletter from Clear Financials

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Common Cents
A short newsletter keeping you in touch with an ever-changing financial world
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NFIB June Analysis

The National Federation of Independent Business has taken a cautious approach to examining the business climate once again.  The optimism index they’ve developed rose for the second month in a row ending May with a rating of 94.4.  This is a strong increase from April’s rating of 92.1, which was up from March’s 89.5.

The 1.3 dip from February to March was the cause of some pessimism among the NFIB’s economists, and they remain skeptical that recent growth in small business optimism is a lasting trend.  One concern is that the reading is still historically low: “…6 points below the pre-2008 average and 13 points below the peak for the expansion…”  Another is that job creation has not yet replaced the jobs lost in the recession.

My hope is that they are being overly cautious.  The NFIB notes that May’s 94.4 is the highest the index has been in a year (last May was also 94.4), but the short term of the trend makes it less reliable.  I believe that this trend may be part of a slightly larger one that is more significant over the lifetime of the recession.  For about 80% of months since October 2010, each month has had a rating above average for that month in previous years.  That is to say, for any month in 2011, 2012, or 2013, it was likely better than that month in 2008, 2009, or 2010.

Examining the patterns of monthly change in the optimism index over the same time period yields similarly encouraging statistics.  Once again, for about 80% of months since October 2010, each month had either standard change (within half a point of the average for that month any given year) or was significantly above average.  That’s not to say there was no decrease in the index.  For example, March, June, and July have seen decreases in the index every year since 2008, but June 2012 is the only one of those months since 2011 to see a drop that was significantly below average.  In short, the most pessimistic times are behind us, and optimism has been generally growing for a few years.

The most significant outlying point of data is the 5.6 point plummet of November 2012.  That was the worst drop in the entire data set with only one other month anything like it: October ’08 with 5.4 point drop in optimism.  However, it would seem that the member businesses of the NFIB are as optimistic now as they were a year ago.  Instead of coasting along like the 2011-2012 gentle climb from 92 in November to 94.4 in May, 2012-2013 showed huge progress from 87.5 in November to that same 94.4 in May.

Perhaps this is just a correction from an overreaction to the election as people find they may be able to continue business as usual.  On the other hand, this might be an accelerated time of growth at the end of what may be a trend heading out of the recession.  A great deal of the more specific data from the NFIB shows that some figures like sales have been exceeding expectations.  It really does not bode well that the percent of member firms borrowing money is on the low end in recent months, but then it seems that those who are borrowing have found it easier to do so.  Once again, my assertion is that whichever businesses take action now and look to expand will find themselves ahead of their competitors who catch interests rates a little higher for coming later.

The report may be found here: http://www.nfib.com/Portals/0/PDF/sbet/sbet201306.pdf

NFIB Small Business Economic Trends

June 2013

© NFIB ResearchFoundation. ISBS #0940791-24-2.

Chief Economist William C. Dunkelberg and Senior Policy Analyst Holly Wade are responsible for the report.

How We Do Business

Business should be more than just about money and competition.  At least half of our waking hours are devoted to our work, and for those of us running small businesses, the lion’s share of the day goes into our business.  Shouldn’t something in which we invest so much of our lives be an expression of ourselves instead of just a means to an end?

I’ve done my best for years to conduct business in an honest fashion.  When I’m looking to hire someone, I try to get to know that person a little first in the hopes that I’ll have business associates who think the way I do.  I started Clear Financial Solutions so that I could help businesses do more of what they do well instead of just trying to turn 90 cents into a dollar.  I’m glad to say that the people I work with are also concerned with getting the job done instead of just billing hours.  Together, we work to cross the t’s and dot the i’s as efficiently and cost-effectively as possible so that our clients can focus on  conducting business.

There are far too many stories in the news about fraudulent accounting and embezzlement.  I read about one accountant a few months ago who was fired because he refused to lie to auditors about inappropriate expenses.  I admire his integrity; it’s so sad that this is how he was forced to show it.  I’m thankful that we at CFS get to exercise integrity on a regular basis.  The hours billed are real hours that were spent focused on you, the client, by myself or someone who answers directly to me.  If there’s ever a question about an invoice, I am always available to sit down and clarify the work we performed and the time it took.  That’s accounting with accountability.

Get Your Free Sample Report today!

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Wednesday, June 26, 2013

Five Ways Big Data is Useful to CFOs

This is another great article from CFO.com that talks about what we've been talking about.  There's a warning in here about over-analysis and dashboards that just aren't helpful.  That's the reason we offer our own Key Performance Indicator analysis and assist business owners in making the data useful.

Read about it at www.clearfinancials.com/kpi

http://www3.cfo.com/article/2013/6/analytics_big-data-cfo-usefulness-growth-strategy-phani_naharjuna?pid=00000000-0000-0000-0000-000000000000&currpage=1

Tuesday, June 18, 2013

Lunch and Learn, August 15

Clear Financial Solutions will be hosting a seminar about Key Performance Indicators (KPI) on August 15, 2013.

If you're not familiar with KPI tracking and analysis, this is a great opportunity to learn.  A monthly or even just a quarterly evaluation using these tools can help change a business for the better.  Some terms should sound familiar such as Receivables and Inventory, but we'll be discussing more complex figures and ratios in depth.

There's no fee to attend, and you'll have the opportunity to learn from an experienced CPA and businessman.  During his decades of accounting, Steven has served as Chief Financial Officer for businesses in many different fields from Oil and Gas to Biotech.  If you're willing to learn about KPI tracking and how it can be applied to your business, this seminar is for you.

If you are interested, you may email me at jordblock@gmail.com

Inflation Data Points to Firming Economy

http://www.reuters.com/article/2013/06/18/us-usa-economy-prices-idUSBRE95H0HZ20130618

Starbucks is Adding Calorie Counts, But Will it Curb Consumption?

http://healthland.time.com/2013/06/18/starbucks-is-adding-calorie-counts-but-will-it-curb-consumption/

Monday, June 17, 2013

NFIB's April optimism report

I prepared a brief examination of the NFIB's report the day after it was published in April.  I'd like to share it now and hopefully receive comments as I prepare to examine this month's report.  Advice or corrections in my examination are more than welcome as well as some thoughts about factors that ought to be taken into account or data that looked useful but may not be.

Thanks,

Jordan

NFIB's Small Business Economic Trends Report

The National Federation of Independent Business published a report yesterday with news that is somewhat discouraging, which may contribute to a self sustaining downward spiral.  The trend highlighted is a decline in small business optimism in the moth of March.  Of course, using this report to predict bad news for small business is not likely to increase optimism in April.

The raw data collected by the NFIB over the last 40 years is certainly valuable in understanding business owner trends at least in the context of their polling methods.  Their indicators are specific and well chosen figures such as how many employees were hired, fired, or left of their own accord and whether business owners plan to take loans.  However, their interpretation may be a little biased.

These melancholy reports and predictions seem to lose sight of the that fact their optimism index has dropped every month of March since at least 2008.  Furthermore, though January's optimism index is a little below the average for Januaries since 2008, both February and March are above the average for those months since 2008.  

It's also worth noting a trend that really does lend credibility to a less positive outlook: 2013's first quarter is almost a full 4 points less optimistic than the first quarters of 2011 and 2012.  The NFIB data shows a sharp drop from October at 93.1 to November at 87.5.  All we can say for sure is that the member businesses of the NFIB were generally discouraged by events in November, but their attitudes are steadily recovering as evidenced by the data. 

Finally, only 4 percent of business owners polled think it is a good time to expand substantially.  It seems to me that those business owners, if they act on their feelings, are going to find themselves a step ahead of the rest as confidence continues to climb (despite this predictable, single-month dip) and people realize it's safe to do business.  The NFIB's own observations (such as increasingly available investment capital) really do indicate a business-friendly situation.

Friday, April 26, 2013

Weird Business and Finance Facts

http://www.weird-facts.org/weird-business-finance-facts.htm

A good example of KPI [WSJ subscription needed]

http://online.wsj.com/article/SB10001424127887324743704578443051916063918.html?dsk=y

Wednesday, April 24, 2013

Putting a Dollar Value on a Facebook Fan

http://boss.blogs.nytimes.com/2013/04/23/putting-a-dollar-value-on-a-facebook-fan/?ref=smallbusiness

Monday, April 22, 2013

Dunham’s Sports CFO Manages Growth

http://www3.cfo.com/article/2013/4/growth-strategies_al-blazek-cfo-interview-dunhams-sports-growth-sports-retail-cpa-sports-authority

Friday, April 19, 2013

All Roads Lead to Climate Risk

http://www3.cfo.com/blogs/risk-compliance/risks--compliance/2012/12/All-Roads-Lead-to-Climate-Risk

Thursday, April 11, 2013

Research Shows Not Everyone Hates Doing Taxes

http://www.people-press.org/2013/04/11/a-third-of-americans-say-they-like-doing-their-income-taxes/

Wednesday, April 10, 2013

KPMG Resigns from Herbalife and Skechers Audits - Senior Partner Implicated in Insider Trading

http://www.accountingtoday.com/news/KPMG-Resigns-Herbalife-Skechers-Audits-Insider-Trading-66307-1.html

Monday, April 8, 2013

Are Your Growth Investments Effective?

http://www3.cfo.com/article/2013/3/cash-flow_growth-investments-performance-scorecards-reinvestment-rate

Wednesday, April 3, 2013

How to Develop Key Performance Indicators

http://smallbusiness.chron.com/develop-key-performance-indicators-4676.html?goback=%2Egmr_4909800%2Egde_4909800_member_228593323#gsc%2Etab%3D0

Wednesday, March 13, 2013

NASA Pod Transports Are Close to Reality—in Tel Aviv

http://www.businessweek.com/articles/2013-03-12/nasa-pod-transports-close-to-reality-in-tel-aviv


http://www.businessweek.com/articles/2013-03-11/the-broken-small-cap-market-undermines-the-recovery

http://www.businessweek.com/articles/2013-03-11/the-broken-small-cap-market-undermines-the-recovery

Thursday, February 21, 2013

ProfitCents



We recently began offering ProfitCents to our clients.  ProfitCents automates the preparation of KPI reports.  I am very pleased with the results.  With ProfitCents, my clients are getting a report that speaks in plain language and provides something that would take me days to generate on my own.  The KPI's and benchmarking are unbelievably invaluable in providing relevant information specifically tailored towards my clients financial performance.  

We offer a free sample report based upon actual data.  Request one here.


ProfitCents

ProfitCents

Trust - The Hallmark of Good Business



Business is about managing risk.  Risk of failure.  Risk of an uncollectible account.  Risk of falling demand.  Uncertainty begets risk.  It also creates opportunities.  We manage risk in many ways.  One is to deal with people we trust.   As a noun, trust means reliance on the integrity, strength, ability, surety, etc, of a person or thing; confidence. 
Placing trust in a person or business is one way to minimize risk.  We have all been in situations where we compared bids or proposals and went with the person or company we were familiar with because we trust their work.  A trusted advisor can help minimize risk by providing objective advice.
Trusting someone else does minimize risk of failure, but it creates different risk.  The business section is filled with stories about people who have abused the trust placed in them.  Of course, most people won’t embezzle or misrepresent anything, but some unsavory practices are entirely too common.  How can you minimize the risk of foul play?  You need to find someone with proven character the same way you’d find someone with proven skill.
We at Clear Financial Solutions pride ourselves on our integrity.  We make our processes and billing transparent, and we’re always glad to explain how and why we did something if you have a question.  We won’t force you to use a more expensive service just so we can collect a higher fee.  We like to do honest business with honest people.
Contemporaneously, Trustworthy means deserving of trust or confidence; dependable, reliable. 
Trust is about more than dependable skill.  It’s also about dependable ethics. 
Is your current provider worthy of your trust?  Will they look out for your interests, in good and bad times, above their own? 
We believe the staff and principals at Clear Financial Solutions exhibit these characteristics, just as a good Scout would. 

Key Performance Indicators - Unlock Your Company's Potential




I have been writing a series of articles about the importance of measuring performance.  It is increasingly difficult to cut through the information and distractions that bombard business owners during the day.  Between email, text messages, phone calls and troubleshooting, it is hard to find time to actually run a business!
How can you keep track of how your business is doing on top of all that?
KPI and Benchmarking can help.
Wouldn’t you like to be able to see – literally look at an image and see that your business is growing the way it should be?
Using a defined set of key ratios, a graphical picture of a business can be presented on a regular basis.  We can provide customized reports focusing on these key indicators and compare them historically and to others in your industry.  In addition, our consultants can provide guidance and interpretation of the results.
We have developed a couple of reports to show you the power of this tool.  Take a look at them.
What have you got to lose?
Let us show you how to focus on the important aspects of your business.  Contact us today and receive a free sample report on your business.