Sageworks Blog

Nov 20, 2012 11:01

When a company is evaluating its own financial health to plan for growth or for a downturn, an assessment of the company’s current situation and the probability of default helps create a more complete picture. [More]

Nov 13, 2012 10:00

Drive down any major road, and at some point you could run into trouble: A wreck that has shut down traffic, construction causing delays, or a dangerous object in your lane you must swerve to miss. In the same way, businesses can prepare for or even avoid disastrous business credit relationships with suppliers, distributors, customers and other partners when they have warning – when they can predict which of those players are riskiest in a business relationship. [More]

Nov 06, 2012 10:34

Uncertainty remains the mood of the day, with surveys showing that a sizable portion of private companies are worried that a potential lack of demand is the top barrier to growth. Business owners must protect themselves against financial and operational risks, even as they balance the need to service customers and plan for growth. [More]

Oct 19, 2012 11:50

Private companies pose unique challenges for banks and others trying to quantify the credit risk associated with those companies in an automated and standardized manner. Since privately held firms aren’t required to share financial information with outsiders, the number of parties with access to accurate, detailed information about the business is extremely limited. However, there are new products on the market that now help these individuals make better decisions. [More]

Oct 18, 2012 10:21

In today’s uncertain economic times, businesses have to be more cautious about who they do business with. Businesses have countless suppliers and moving parts, how is a business owner supposed to identify a singular high-risk area? To help business owners, Sageworks has identified multiple scenarios where a business should conduct a financial due diligence analysis. Are you aware of your firms risk exposure? [More]

Oct 17, 2012 10:59

Recent challenges in the U.S. have bolstered the need for examining credit risk. The financial and operational risks to business owners are evident in several statistics. The 44,435 business bankruptcies that have been filed in the 12 months ended June 30 remain more than 28 percent higher than the annual average between 2000 and 2006. What can companies do to minimize credit risk with partner businesses? [More]

Jul05

5 Financial metrics every business owner should know Mary Ellen Biery [email] Research Specialist

Jul 05, 2012 14:47

Is your business successful? How do you know? If you’re like most business owners, your days are filled by efforts to make your company successful. Those tasks might be focused on making a great product, generating sales, or building customer relationships. And you might be great at those things. But how great are you at making money? And how well are you managing your resources?
While different people have various definitions of business success, there are five key financial metrics that can help you understand your business’ financial success and how you’re faring against competitors. [More]

Jun18

Companies' cash tied up in inventory, slow payers Mary Ellen Biery [email] Research Specialist

Jun 18, 2012 14:28

Later customer payments and slower moving inventory have combined to tie up private companies’ cash 16 percent longer than just three years ago, according to recent data from Sageworks Inc., a financial information company. That’s money companies don’t have in the bank to hire or buy new equipment, even though sales and profit margins this year are up. [More]

Jun 14, 2012 17:35

In business, as in most endeavors, passion is a key ingredient to success. Entrepreneurs who genuinely enjoy sales, operations, and customer service are much more likely to build profitable firms than individuals who are simply “going through the motions” of business in the name of making money. But even the most enthusiastic managers will enjoy much greater success if their passion is governed by sound financial discipline, which stems from an understanding of their financial statements. [More]

Apr23

Avoid cash flow catastrophes: Part IV-10 ways cash flow forecasts go wrong Mary Ellen Biery [email] Research Specialist

Apr 23, 2012 12:45

Experts say cash flow forecasts can be tripped up by several common items that business owners and financial managers might overlook. Generally, these can be blamed on two factors: omission or over-optimism. [More]