Friday, April 13. 2018Entrepreneur Risk - Business Success Over Time
Entrepreneurs must be comfortable with risk and uncertainty. Choosing the entrepreneurial path is not for the faint-hearted. In the following image note the number of businesses that started in any given year and the corresponding percentage of businesses that are still in existence as of March 2017. The Bureau of Labor and Statistics is the source of the data.
Entrepreneur - Business Starts and Still in Existence This data shows that: Undertaking the entrepreneurial path is not easy. The odds of failure may be unacceptable for would-be entrepreneurs. It is imperative that prior to starting a business, an entrepreneur must be diligent about understanding: their vision, their product or service offering, the competitive market, potential risks (both SWOT and PESTLE analysis), the business' financial needs including cash flow, ramp up timeframe, business demand for time commitment beyond 40 hour work weeks and most importantly the impact on their personal life. ©2018 Thorsten Consulting Group, Inc. Thursday, June 22. 2017The Evolving Role of the Controller / CFOEvolving Role of the Controller / CFO 1. Gold prospector. 2. Casting agent. 3. Team player. 4. Meteorologist. The Controller or CFO as a gold prospector must find ways to be strategic. They must identify the value to the organization beyond traditional accounting functions, accounting process improvement or efficiencies. This individual must also be a casting agent. Every company will acknowledge that their most valuable asset is their people. Therefore the Controller or CFO must be excellent in recruiting, developing and retaining staff. It is imperative that the Controller or CFO as a team player practice servant leadership. When any support service department such as accounting, human resources, or information technology, desires to participate in the Strategic Planning process of the organization, they must practice servant leadership. When support departments complain about not having a voice in the direction of the company it is usually a result of not understanding their role in the organization as well as their inability to be a servant of operations. Finally, a Controller or CFO must be a meteorologist. They must be able to tell what happened to the organization regarding traditional Financial results. They must also be able to predict or forecast what is going to happen to the organization in the future. This not only includes tracking and forecasting the organization results but also includes interpreting the business environment in which the company operates. A Controller or CFO that understands how economic trends impact the organization will always be valued. ©2017 Thorsten Consulting Group, Inc. Wednesday, April 12. 2017The Evolving Role of the Controller / CFO
Watch the opening remarks of Jim's Keynote on "The Evolving Role of the Controller / CFO."
Monday, May 2. 2016The Next Step for the Accounting Profession
As you may know, the American Institute of CPAs (AICPA) announced an exciting proposal to create a new association with The Chartered Institute of Management Accountants (CIMA) that will represent and advocate for the entire accounting profession, while preserving the member bodies of both organizations. As a CPA in business for over 30 years, I am excited by this proposal because I believe it is the next logical step to meet the needs of our evolving profession. That’s why I will vote “yes” and I encourage you to do so as well.
CPAs are fast becoming thought leaders in the business world, and with our growing scope comes a need for broader skills and resources. This proposal would deliver that. While maintaining all the benefits we have as AICPA members, we would also receive automatic membership to this new association, providing access to more international research, tools and market insights to keep our skills sharp in rapidly changing business world. We would gain a ton and lose nothing. It’s as simple as that. Also, the proposal has the support of the AICPA’s Board of Directors, governing Council, Business and Industry Executive Committee, Government Performance and Accountability Committee, and Women’s Initiatives Executive Committee; 52 state CPA societies; and employers and finance leaders in the U.S. and around the world. Voting “yes” on this proposal is important to the CPA’s continued growth and success today and into the future. Take action now Voting is quick and easy, and I encourage you to join me in submitting your “yes” vote today. Personal and confidential ballot links were emailed out from the third-party vote administrator called, “AICPA Independent Tabulator.” If you missed it, you can visit www.directvote.net/aicpa to retrieve your voting credentials. But don’t wait — voting closes at 5pm ET on June 16. You can learn more about the proposal, by visiting www.aicpa.org/horizons. Saturday, April 2. 2016SCAM ALERT - avoid http://www.kerbncolour.com.au
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http://www.kerbncolour.com.au SCAM Alert Friday, January 15. 2016Which way is the economy headed?IPS - G17 thru 12-31-2015 ©Thorsten Consulting Group, Inc. Friday, September 25. 2015Life is like a Zip Line!Life is Like a Zip Line - Copyright 2015 Thorsten Consulting Group, Inc. Friday, September 4. 2015The Entrepreneur’s MistressThe Entrepreneur's Mistress - Thorsten Consulting Group, Inc. (c)2015 When making your wedding vows, the idea of having an affair or mistress is not at the forefront of your thoughts. I will also suggest that many entrepreneurs have never considered being unfaithful to their spouse. However, the “love affair” or romance that an entrepreneur can have with their business can result in misplaced priorities.
For again Scrooge saw himself. He was older now; a man in the prime of life. His face had not the harsh and rigid lines of later years; but it had begun to wear the signs of care and avarice. There was an eager, greedy, restless motion in the eye, which showed the passion that had taken root, and where the shadow of the growing tree would fall. Entrepreneurs may forget the main reasons that they pursued being in business for themselves. Stephen Covey’s 2nd habit of highly successful people is, “Begin with the end in mind.” The earthly end of all of us leads to only one place. I have not seen a tombstone that showed the last 5 years of financial statements or cash available in the bank. Nor have eulogies focused on the rapid growth of the business or market share obtained. Tombstones discuss family. Eulogies will include business; however, they too are focused on family. Therefore, “beginning with the end in mind” focuses the entrepreneur on the importance of family and what trade-offs are acceptable and which ones are not.
Thursday, August 13. 2015Left Handed People are DisadvantagedCoaching Relationship - Thorsten Consulting Group, Inc. ©2015 During the 1950s and 1960s, being left handed was seen as a disadvantage. Great efforts were taken by teachers and parents to train students to use their right hand as opposed to their left hand for writing. As a consequence, many kids were forced to focus on hand writing techniques as opposed to learning techniques. Unfortunately, many managers and coaches still try to force “left handed people to work as if they were right handed.” This metaphor illustrates how people are trained with specific techniques that may not be effective for that individual. Well-meaning coaches and managers may be too narrow in their approach to training or philosophy about business. Unfortunately, their technique or approach may be in conflict with the skills, intelligence or personality type of the individual being trained, managed or coached. There is a significant danger when the coaching or training approach is “one size fits all.” Let’s consider this example as it applies to the role of a coach and their respective student, customer or employee. Since coaching focuses on the coachee, let us begin with the left side of the diagram representing the individual that is to receive the coaching service, counsel or advice. There are three main levels of coaching services that an individual can receive: In essence, these three levels represent the “needs” of an individual that is to be coached. The right side of the graph represents the coach’s role. Note that there are two extremely significant principles that apply to a coach. The first is that a coach cannot allow their self-interest to get in the way of helping another individual. The second principle is that the coach should foster independence in the individual as opposed to dependence. Unless an individual is seeking a long-term learning relationship, most coaching assignments should have a specific task with a specific timeframe. The only type of ongoing coaching relationship should be a life-long learning relationship. Beware of the coach that is hired for a short term need who insists on a long-term relationship. The coach may be putting their self-interest ahead of the needs of the individual. There are many skills a coach should possess including: Now we can reconsider the comparison of left handed and right handed people. A coach that only uses one approach without recognizing the limitations of that approach is not serving his customers well. Failing to understand the needs and styles of the individual being coached typically leads to short and unfulfilled coaching relationships. One of the main reasons coaching assignments do not work out well is that the coachee and the coach are not compatible. A successful coach will be flexible and capable of working in a variety of styles. The greatest of coaches will exhibit the most flexibility in working with a variety of people. Therefore, it is important for coaches to evaluate personality types and intelligence types to determine how their skills must be altered to bring out the best in the individual. About the Author: Jim Lindell, CPA, CSP, CGMA is a best-selling author and speaker. Jim is a TEC Chairman (The Executive Committee), which is the Granddaddy of CEO coaching organizations and with its’ Vistage Affiliation is the World’s largest peer group for CEOs and Senior Executives. Jim has been Coaching CEOs through TEC since 2001. His website is www.thorstenconsulting.com. Jim’s latest book, “Controller as Business Manager” is available from the AICPA at http://bit.ly/1zGOYmz. Friday, June 19. 2015Bubbles? What Bubbles? The Economy is absolutely fine.I remember a story that was shared by a pastor. He said that "if giving a sermon and the argument is weak, pound loudly on the pulpit." When it comes to the economy, the stock market, the unemployment, the student loan debt, the extended automobile terms and interest rates - pundits are pounding loudly all around. Wednesday, June 17. 2015Effective FED FUNDS Rate - One of these things....Effective Fed Funds Rate One of these things is not like the others, One of these things just doesn't belong, Can you tell which thing is not like the others By the time I finish my song? Did you guess which thing was not like the others? Did you guess which thing just doesn't belong? If you guessed this one is not like the others, Then you're absolutely...right! Sesame Street Song Read more at http://www.songlyrics.com/sesame-street/one-of-these-things-is-not-like-the-others-lyrics/#KmMSSREttHLJLMjH.99 Thursday, May 7. 2015How Organizations Can Cultivate InnovationTaped at the 2014 Las Vegas Controllers Conference - Nov. 2014 Tuesday, March 31. 2015Teamwork and Sports ExamplesPlatteville Scrum - photo by Greg Anderson The history of the term “team” has its roots in Germany and England. Originally it applied to a “team of draft horses” or to “lineage or race.” The latter no longer is used, but the former meaning evolved into its main usage today for sports teams. It is worth noting that some of the synonyms of team are: army, band, brigade, company, crew, outfit, party, platoon, squad and gang. If an employee does not enjoy being a part of the “team,” maybe they would prefer being part of a “party” or “gang.” Typically, participation in sporting events is voluntary. However, in the work world, many of the team synonyms suggest participation is involuntary. Some employees may never appreciate sports examples. Instead of dismissing sports analogies, an employee should interpret and utilize the lesson from their perspective. Teamwork 4 legged race - image by presentermedia Jim Lindell is the author of “Controller as Business Manager” by the AICPA http://bit.ly/1zGOYmz . He is an Award Winning Speaker and Best Selling Author. In addition, Jim is a TEC Chairman for two groups in SE Wisconsin (TEC/Vistage is the world’s largest peer group of CEOs and Executives) ©2015 Jim Lindell Saturday, February 28. 2015Money Velocity (M2V) at lowest point in 40+ years
In 2013, Wells Capital contrasted the Velocity of Money (M2V) with a variety of indicators. At the time, they pondered if the money velocity would pick up in 2014 and what would be the results. They also commented:
In the current recovery, the velocity of money is not behaving oddly as many believe. Rather, as shown in Exhibit 1, falling velocity characterizing the contemporary recovery has also been commonplace in past recoveries. Moreover, and most importantly, should velocity continue to simulate past recovery cycles, it should soon begin rising. (source:http://www.wellscap.com/docs/emp/20131111.pdf) We are now approaching the end of the 1st quarter 2015. What has happened to the velocity of money? It has continued its decline. Consider the following chart:
Velocity of Money vs. Nasdaq - (C) 2015 Thorsten Consulting Group, Inc. This relationship is worth reviewing regularly. The potential increase in interest rates, the reduction (or continuation) of QE and the impact on the stock market should show up in the above chart. If Wells believed money velocity should soon begin rising, we are that much closer. By the way, note how the M2V is at the lowest point in almost 45 years. Friday, February 20. 2015Cause and Effect? Civilian Labor Force Participation RateCivilian Labor Force Participation Rate, Velocity of M2 Money Stock and Home Ownership Rate - St. Louis Federal Reserve - Thorsten Consulting Group Cause and Effect - Note how the decrease of participation in the Civilian Labor Force could be related to the reduction in M2 and a corresponding decrease in Home Ownership. For the economy to move forward, we need quality jobs (not low end service jobs.) Without decent jobs and significant participation of the civilian labor force, it will be extremely difficult for the economy to change in a positive fashion. ©2015 - Thorsten Consulting Group, Inc. - Jim Lindell |
Jim LindellJim Lindell is a National Speaker, Author, and Vistage Chair. He is motivated by helping others improve their lives and businesses.
He is President of Thorsten Consulting Group, Inc. Order Jim's book - "Controller as Business Manager". controller as business manager - jim lindell - thorsten consulting group QuicksearchArchivesCategoriesSyndicate This BlogBlog AdministrationNetworked Blogs |