WHAT BUSINESS OWNERS ARE SAYING ABOUT THIS BOOK:
Peter has precisely targeted the core financial needs of small-to-medium-sized businesses. He zeros in on the criticality of analytics and the underpinning data and how to practically use it to drive results. I have seen him successfully use this approach many times. Scott Marvel, CEO, Nexus Cognitive
The concepts in Profit Peak really worked for us! We were able to double the size of our business in five years. Getting all the right players at every position is a winning formula. Greg Hardin, CEO, Diverse Marketing / Diverse Toy
We have worked with the author for over ten years and we endorse his profit-improvement techniques. By understanding our financial statements and improving our financial modeling, we have minimized our financial risks, improved our strategy, and received quick answers to critical business questions. All these factors have been instrumental in driving our earnings. Gary Cravens, President, Advance Components
I didnt understand what I was missing in our small business until I started asking the question What do CFOs do? We had a good CPA and bookkeeper keeping us in line, but when the author began implementing the concepts described in this impactful book as our fractional CFO, I began to really know the financial side of our business. Instead of just keeping score through the rear-view mirror, we are now looking down the road ahead with forecasts, metrics, strategies and processes that have cast new light on how to run our business well, and profits have soared! Dave Reichert, President, Davis-Hawn Lumber & Architectural Millworks
Profit Peak is an easy read and quick reference guide for business owners seeking to improve their financial management practices. We have benefited from the authors knowledge and experience over five years. Allison Deen, Co-Owner, Eddie Deen & Company Catering
The lack of financial literacy is one of the most overlooked issues facing our society today. We have an agency full of financially literate employees with a business owner mindset yes, even interns. The concepts outlined by Peter Baldwin have been helpful to us and they will help you to become more financially literate, too. Michael Rose, Founder & CEO, Mojo Media Labs
Peter Baldwin helped us build a financial culture that includes education, collaboration and the importance of tasking team members to be fiscally responsible with corporate resources. Because of this education, we participate in timely reviews of our financial performance and are now better able to adopt new technology and processes. Profit Peak will help your company establish and maintain an industry leadership position. Suzanne Cravens, Co-Owner / CEO, Advance Components
Like it or not, Peter Baldwin will prove to you that the numbers dont lie. By following his disciplined approach to collecting and analyzing critical data and adjusting organizational behavior, owners / managers can steer those numbers in more profitable directions. Dan Zimmerman, Serial Entrepreneur & Past President, Manufacturing Company
My six-year-old business was growing rapidly but forecasting cash had become a real problem. We worked with Peter Baldwin to build a predictive financial model that managed our sales growth and additional capital needs as they arose. The concepts outlined in Profit Peak kept us on track! Greg Wood, President, Image Reproductions
Peter Baldwin used his unique skill set to develop a deep knowledge and understanding of our business in a fairly short time. We used his dashboard reports for a strong business overview and to identify measurable metrics. With his entrepreneurial view, he quickly knew what was important to the business and coached our team to success. Alan Putter, President, Amusement Management International
A GUIDE to understanding financial expertise providers who work with small-to-medium-sized firmsa BLUEPRINT for structuring your finance and accounting departmenta PRIMER on using financial statements and analyticsand a ROADMAP to financial management success.
Peter M. Baldwin, M.B.A.
Your Ten Percent, LLC
Copyright 2020 by Your Ten Percent, LLC. All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without written permission of the Publisher. Requests for permission should be made at www.y10p.com
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts to prepare this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties. The advice and strategies may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, resulting from implementing the strategies in this book. Your Ten Percent, LLC is not a CPA firm.
Printed in the United States of America
y10p.com
Cover, design, and editing
by Martha Carlisle,
pbandjdesigns.com
This book is dedicated to
the many entrepreneurspast and present
with whom I developed, implemented, and refined
these operational finance tools & techniques.
A special thanks to my beautiful wife Nancy for
supporting me in this remarkable journey.
A heartfelt thank you to Martha Carlisle
for adding great clarity to the manuscript
and conceptualizing the book design and cover.
YOUR FREE GIFT!
To get the best experience with this book, download the Profit Peak for Entrepreneurs Workbook to assess your current financial management capability and to plan specific improvements to your business.
You can grab a copy here:
www.y10p.com/profitpeakworkbook
CONTENTS
Approaching Financial Management
Opportunities multiply as they are seized. Sun Tzu
As you read this chapter, think about the opportunities you have as a business owner and what those mean to you in terms of financial success. How would you define success for you and your business? Where are you on the path to achieving that success?
IF YOU ARE LIKE MANY ENTREPRENEURS of small-to-medium sized firmsdefined as those firms with up to a couple hundred employees and revenue up to around $30 million you are passionate about filling customer/client needs but not as passionate about administering the financial aspects of your firm. Your entrepreneurial drive led you to create something special in the competitive world of business, but your financial training may not come from formal sources. Your knowledge of running a firm is likely from personal, on-the-job training (in other words, the school of hard knocks!). Or, if youre lucky, you may have training from other experienced entrepreneurs. If you do have formal financial training, you may feel the need to polish those skills.
The goal of this book is to give you a simplified, common-sense approach that empowers you to leverage the full benefits of financial management while maximizing your time doing what you like to do best. Indeed, administering the financial aspects of your firm should not take away from your ability to generate more revenue. The fact that you are most likely a subject matter expert in one or more aspects of your firm is impressive in itself; however, being both an expert and running your firm concurrently is even more impressiveand perhaps for some who are new at this, even intimidating.
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