Owner Operators |
Absentee Owners |
- Wonder why there is not enough money in the bank.
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- Understand the difference between profits and cash flow.
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- Do not understand how to read company financials.
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- Proactively work to increase and maintain a healthy profit margin.
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- Offer generous payment terms.
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- Stingy when it comes to offering payment terms.
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- Believe that a 40% margin on parts and labor is good.
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- Demand at least a 60% margin on parts and labor.
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- Do not know how much their business can sell for in today’s market.
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- Know how much their business is worth in today’s market, and know what to do to increase its value.
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- Do not know the breakeven point for their business.
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- Know very well what the breakeven point is for their business.
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- Do not know how to read a profit and loss statement.
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- Know exactly how to analyze a profit and loss statement.
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- Do not know how to read a balance sheet.
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- Know exactly how to analyze a balance sheet.
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- Do not know how to read a statement of cash flows.
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- Know exactly how to analyze a statement of cash flows.
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- Do not know how to calculate the efficiency of their business.
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- Know how to calculate the efficiency of their business, and know what to do to increase it.
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- Spend too much money on impulsive purchases.
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- Make major purchases by a careful calculation of their return on investment.
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