Building Your Multi-million-dollar Practice: With Peter M. Vessenes

Episode 3 is split into four parts; each segment will be discussing a different Liquidity KPI. You'll learn about how that metric impacts your client’s business and what it can do for your advisory services. The Quick Ratio is a way of measuring a company’s liquidity and its ability to meet obligations. The basic calculation is: (Current Assets - Inventories) / Current Liabilities. Since this KPI takes inventories into account, is more valuable for companies that manage inventory; like a hardware store, grocery store, or clothing store. So Quick Ratios will be valuable for specific type of business, and are a good indicator of the immediate strength of that company.

Episode 3 is split into four parts; each segment will be discussing a different Liquidity KPI. You'll learn about how that metric impacts your client's business and what it can do for your advisory services. The equation for the Current Ratio is relatively simple; (Current Assets / Current Liabilities). But what this means is that if the current liabilities exceed the current assets, the company will have a problem meeting short term obligations This KPI is important to monitor because it’s a simple means of determining the strength of the company and their ability to pay short term debts. It’s an excellent way to help your clients what their finances look like today and where they’re moving towards in the future.

Forecasting your clients' future isn't easy - learn how to create a more profitable future for your clients through advisory services and True Break Even. You should listen to episode one to fully understand the difference between traditional breakeven and True Break Even, but it boils down to accounting for growth, opportunities, and risk.  So how can you multiply your clients’ profits? Help your clients build their True Break Even Determine the percentage of True Break Even that makes up unchanging expenses Use scenario tools, like ProfitSee, to use the growth money to reach the increased revenue target

One of the most common questions we receive is “what is breakeven, really?” Most people believe that breakeven means nothing more than the monthly revenue that will cover expenses. Now this sounds good, but it doesn’t really work that way. Why? Well not all bills are paid on time, so you have to taking aging receivables into account, and you can’t forget about seasonality trends. Listen to this podcast to learn from ProfitSee's CEO & Founder, Peter M. Vessenes on how to calculate True Breakeven and help your clients account for growth, risk, and plan for a successful future. Learn more and download the PDF with the formula instructions here: 

Learn business tips and insights from Peter M. Vessenes’ over 30 years experience in corporate turnarounds, acquisitions, mergers, and helping thousands of small and mid-sized businesses improve profitability. Since 1983 Peter has served as a high-level corporate adviser, and founded ProfitSee in 2008. He is the author of two books, The Golden Rules of Economics: The Real Way Out of America’s Financial Crisis, and Building Your Multi-Million-Dollar Practice. Now we’re taking his industry expertise and putting it into a podcast!