Business

5 NUMBERS TO STAY ON TOP OF TO BUILD WEALTH IN YOUR BUSINESS

By Cindy Gordon Business Rescue Coaching, LLC

Many small business owners don’t take advantage of the information within their financial statements to growing their business. Your statements are not just for filing your tax returns. They hold the secrets to your business success and financial stability. Stay on top of these 5 vital numbers to make proactive decisions that will help you grow your business faster and with ease.

1. BANK BALANCE

There’s an old adage – “Cash is King.” It refers to the importance of maintaining positive cash flow for the overall fiscal health of a business. A lack of cash can lead to the bankruptcy of a business. Cash is needed to cover day to day expenses such as purchases of goods to be sold, salaries, rent, and to fund the growth of the business. You can finance business growth, but you need a strong and steady influx of cash to ensure that you meet your debt obligations. Banks are very leery to finance a business that doesn’t have success generating cash – unless you’re comfortable with 12 percent interest rates!

2. ACCOUNTS RECEIVABLE:

(the money that is owned to the business) Many businesses take payment at the time the service or product is sold. If your business provides credit, it is essential to monitor the collection of these funds to ensure they are received on a timely basis. Customers can quickly become delinquent in paying what is owned to you. This could have a serious impact on your ability to meet your obligations. Therefore, regular monitoring and follow up of accounts receivable is essential to a financially secure business.

3. ACCOUNTS PAYABLE:

(the money that is owed to others by the business) Your ability to pay your bills is dependent on how much money you have in the bank and how quickly you receive payments from your customers. Not being able to pay your creditors on a timely basis could have detrimental effects on the business such as losing key suppliers for your products; the need to lay off employees you can’t pay or defaulting on a loan that could lead to bankruptcy. Ensuring your payables are paid on a timely basis helps to build your company’s credit rating, which supports opportunities for gaining credit in the future. It ensures you avoid incurring interest charges that can quickly build your debt – especially credit card balances which carry excessively high rates.

4. GROSS PROFIT

Many business owners are focused on the amount of sales generated. The financial success of your business is to a small extent reliant on sales, but more importantly is the gross profit you make on each sale. If you sell soap at a price of $6 and it costs you $4 to make or purchase, then your gross profit will be $2 per bar. How many bars of soap would you need to sell to make enough money to cover your overhead and show a net profit (see below). By knowing your gross profit percentage, you can compare it to industry average to ensure you are being competitive in your pricing.

5. NET PROFIT

Your net profit is the amount of income left in your business after all your expenses (including a reasonable salary to the owner). As a rule of thumb, a strong business will generate net profit between 10 – 15 percent of total revenue. Therefore, if your business is generating $1,000,000 of revenue, a strong outcome for the year would be $100,000 - $150,000 of net profit. Of course, different industries would have different guidelines, but it’s important to keep an eye on your net income to ensure you are accumulating profits for future growth. If you are a business owner that doesn’t track your numbers and leaves them for your tax preparer, then I can guarantee money is slipping through your fingers. There is a very simple fix for changing things. Work with someone who can help you get the financial information you need and build the habit of being proactive to make smarter and more informed

Cindy Gordon is the owner of Business Rescue Coaching, LLC,

an executive coaching group that provides leadership and operational support to small business owners to gain more success with less stress. Business Rescue Coaching provides one-on-one coaching, Executive Peer Support groups and leadership workshops. To learn more visit: www. BusinessRescueCoaching.com

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COVER STORY Superhero September to Save Children

By Jennifer Marshall

Glass shattered and little Bobby cowered in the corner of his room. Daddy yelled louder and louder, and tears poured from Bobby’s eyes. Mommy screamed, and Bobby grabbed Buzzy the Bunny squeezing him to his chest.

Daddy was hurting Mommy again, and it was all his fault. He shouldn’t have spilled his red punch on the carpet.

Footsteps boomed down the hall. The Monster was coming. Bobby pushed his small body deeper into the wall as if hoping he could merge into the plaster and disappear forever.

The bedroom door flew open, and The Monster towered over him. Mommy surged forward and grabbed The Monster by the arm. The Monster raised his hand, which was as big as any monster claw, and hit his Mommy knocking her to the floor.

Bobby knew what was coming next; it was his turn. Clinging helplessly to Buzzy, he closed his eyes seconds before impact…. .

NO CHILD SHOULD EVER BE ABUSED! According to the CDC: “There were 676,000 victims of child abuse and neglect reported to child protective services (CPS) in 2016.”

The nonprofit organization Childhelp states that: “A report of child abuse is made every ten seconds.”

THIS NEEDS TO STOP! We need a superhero! Thankfully, heroes come in all varieties, and we have one right here in the Valley. He’s Detective Sean Reavie with the Phoenix Police Department, and he’s making a difference in the lives of abused and neglected children. Reavie is a member of the Family Investigations Bureau serving in the Crimes Against Children Unit.

He’s the creator of the program—Superhero September: The Fantastic Fourth—which raises awareness and funds for children who’ve been emotionally, physically and sexually abused and/or are the victims of neglect.

To comprehend how awesome and worthwhile this project is you have to first understand how and why it started back in August 2015.

Reavie and the other detectives in the Crimes Against Children Unit work with Childhelp Children’s Advocacy Center, which falls under the umbrella of Childhelp.

“Kids who come into the Childhelp Center have been listed as victims in police reports,” said Reavie. “Last year, the Center saw 7800 children.”

The Center is designed to be the central stop for all their care.

Forensic nurses and pediatricians examine the kids, which is especially critical if the abuse is sexual, and they collect evidence and take photos.

Meanwhile, a victim’s advocate meets with the family to explain the many mental health services the Center provides including play therapy and immersion therapy.

Next, the kids are taken to a playroom where no one can disturb them. Here, they can have fun with other kids, watch movies and just simply play.

Lastly, the children are interviewed by a forensic interviewer in a open-ended format. So these kids, who’ve already suffered so much, only have to share their story once, it’s audio and video recorded.

“No matter what I did,” said Reavie, “the sad and terrified children that came to see me were still sad and terrified when they left—all because someone took away their right to be a child. I realized I needed to do something to reach these kids while I had them because I didn’t have them for very long.”

Reavie, who’d been bullied in school, reminisced about what had made him happy and given him strength during those difficult childhood days. A selfproclaimed “comic book and superhero nerd,” he knew what his best escapism had been—reading comic books and dreaming of being the next superhero.

In August 2015, Reavie received approval from the Director of Childhelp to hang posters of superheroes in their lobby and place comic books in their bookracks. However, he waited until September to implement these ideas— thus, the creation of Superhero September: The Fantastic Fourth.

One day, Reavie walked past a movie theater where Ant-man and Avengers: Age of Ultron were both showing.

“90 percent of the people,” said Reavie, “were wearing superhero Tshirts, and the kids were playing with action figures. Everyone was happy. What if we gave every kid who came into Childhelp a superhero T-shirt or action figure? Then, they’d be happy when they left.”

Reavie took to social media with his donation request. When he came to work the next morning to a desk piled high with T-shirts and action figures, he knew he was onto something special. He also knew he worked with an amazing group of first responders as many of his fellow officers and firefighters had contributed to the mountain of goodies.

Caught up in his excitement, he decided they should host a superhero event. In just a few short weeks, Reavie and his dedicated helpers planned a live superhero show. Batman, Batwoman, Spider-Man, Captain America and Hulk (courtesy of one of the SWAT members who sprayed his body green) were among some of the acclaimed guests along with visitors from Channel 3.

While this wasn’t a public event, TV coverage spread the word, and people were excited. In fact, the Phoenix Law Enforcement Association was so impressed, they wrote him a $500 check to buy more superhero gear.

Before he could go out and shop, a South Phoenix Target manager, who’d seen the TV coverage, contacted the Phoenix Police Department with a generous offer. If Reavie would shop at his Target, he’d give him an additional $250 to spend.

The day before he was to go shopping, Reavie decided it would be a hoot to take Captain America with him. That was the official beginning of the September Superhero Shopping Spree.

This annual September event helps to stock Childhelp for the coming year.

“Last year, we raised $22,000, and it was all gone by about March,” said Reavie. “This year, our goal is to raise $50,000.”

While everything superhero is still the order of the shopping day, they’ve expanded their needs to include diapers, underwear, clothing and shoes because some of the kids come in with nothing.

The four September Superhero Shopping Sprees are scheduled on the following Saturdays: 1, 15, 22 and 29. They’re all held at different stores in the Valley, and they’re all sponsored by different area businesses. These Shopping Sprees are open to the public, and in fact, Reavie encourages Moms and

Reavie with Black Widow and Captain America

Dads to bring their kids out dressed as their favorite superhero.

“The Super Main Event!” is held on Saturday, September 8 at the Childhelp Center and is considered their flagship affair. This is a festive day for the entire family, and it goes without saying that the party will be full of everyone’s favorite superhero characters.

“The superheroes,” said Reavie, “are all professional costumed actors with movie quality costumes. They’re astonishing to look at because they look like the real person.”

You can donate to

Superhero September: The Fantastic Fourth

in several ways. Join Reavie during one of his Shopping Sprees, and buy some of those needed items. Or, write a check to Childhelp, and mail it to the attention of: Danielle Gilmour 2120 North Central Avenue Suite #130, Phoenix, Arizona, 85004.

On that, Reavie gives all the credit to Gus Matos and his extraordinary Heroes United Arizona, which is their exclusive supplier of costumed actors. To ensure he can impress a child with the famous heroes he hangs with and knows, Reavie has his photo taken with each one.

In the end, the Superhero September: The Fantastic Fourth program is designed for kids to feel empowered to be strong and heroic—to see themselves as the hero rather than as the victim. What happened to them doesn’t have to define their being or stop them from living a healthy and happy life going forward.

Reavie speaks of hope being stronger than fear, and he witnessed this with a six-year-old sexual assault victim. Curled in the fetal position, she was totally petrified. She wouldn’t talk, and she wouldn’t move—that was until he placed a pink cape and pink cowl on her. Instantly, she jumped up, raised her arms and proclaimed: “I’m a hero, and I’m going to save you all.”

Finally, Reavie was bestowed the honor of “State of Arizona Policeman of the Year” for his ingenuity and all his hard work.

List of Events

AUGUST 26TH

Faith Bible Church Fundraiser

5:30 p.m. - 7:30 p.m.

AUGUST 31ST

Second Annual Super Kids Event at Norterra Canyon Elementary School

SEPTEMBER 1ST

Fourth Annual Target Superhero Shopping Spree presented by PLEA

9:00 a.m. - 10:30 a.m. Target at 2140 E Baseline Road

SEPTEMBER 8TH

The Super Main Event presented by PPSLA and AZCOPS

9:00 a.m. - 12:00 p.m. Childhelp Children’s Center of Arizona 2120 N Central Ave SEPTEMBER 15TH

Walmart Superhero Shopping Spree presented by Paychex, Inc.

9:00 a.m. - 10:30 a.m. Walmart at 1825 West Bell Road

SEPTEMBER 22ND

North Phoenix Superhero Spectacular

2:00 p.m. - 4:00 p.m. Nathalie &Co. Dancewear and Little Things 2460 W Happy Valley Rd

SEPTEMBER 29TH

Target Shopping Spree presented by Valley Spinal Care

9:00 a.m. - 10:30 a.m. Target at Desert Ridge Marketplace 21001 N Tatum

To learn all the details about these events, check out their Facebook page: “Superhero September: The Fantastic Fourth.”

Make a donation today! Visit: www.childhelp.org/superhero4 Or contact the Childhelp Children’s Center of Arizona by calling 602-271-4500

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By Shelley Sakala

Phoenix needs more houses! With the economy strong in both nationally and in Arizona, new home construction is on the rise – but it’s pacing below the demand needed to accommodate the increase in home buyers. So, what exactly is causing this uptick in demand? One reason is the unemployment rate. As of June, Arizona’s unemployment rate was steady at 4.7%. By comparison, the unemployment rate during the economic crisis of 2009 was 10.9%. Another contributing factor is the influx of California transplants looking to build luxury homes (don’t hate on California – this is actually a good thing for the Valley).

All of this has resulted in a significant increase in new home construction. In the first half of this year, more than 11,000 building permits were issued for single-family homes in the Valley. That includes nearly 2,000 for the city of Phoenix – almost double the number from the same time period last year. But it still might not be enough construction to keep up with the demand. When this happens, buyers often turn their attention to existing homes. The luxury market in Norterra/Deer Valley is limited, with just 10 homes currently listed for sale at price points of $750,000 or above. One thing North Phoenix has, however, is acreage – something hard to find in the interior of The Valley. Homeowners looking for a little more elbow room can cash-out of their expensive California homes, grab a large piece of Phoenix land, and build a minimansion here in the desert. There is much more inventory in Norterra/Deer Valley for the non-luxury market, but the supply is still low. For homes listed below $750,000, the Norterra area (85085) shows 144 properties for sale, while Deer Valley (85027) shows 85 properties.

New communities such as the 1,100home Union Park at Norterra will help ease some of the local market pressure, but will also increase the desirability of North Phoenix as a place to live, work, and play. And as long as Californians keep pointing their moving vans toward Phoenix, more construction will still be needed. While there are no guarantees, don’t be surprised if you see your home value increase over the next couple of years. The economy is strong, people are working, and the market is heating up. That’s a good combination.

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11 CRITICAL HOME INSPECTION TRAPS TO BE AWARE OF WEEKS BEFORE LISTING YOUR PHOENIX HOME FOR SALE

According to industry experts, what you should know about them any of these 11 items could cost Need to Know to Pass Your Home there are over 33 physical before you list your home for sale. you dearly in terms of repair. That’s Inspection” has been compiled problems that will come why it’s critical that you read this which explains the issues involved. under scrutiny during a home Whether you own an old home or report before you list your home. If inspection when your home is for a brand new one, there are a num- you wait until the building inspec- To hear a brief recorded message sale. A new report has been prepared ber of things that can fall short of tor flags these issues for you, you about how to order your FREE copy which identifies the eleven most requirements during a home inspec- will almost certainly experience of this report call toll-free 1-844common of these problems, and tion. If not identified and dealt with, costly delays in the close of your 310-9514 and enter 3403. You can home sale or, worse, turn prospec- call any time, 24 hours a day, 7 days tive buyers away altogether. In most a week. cases, you can make a reasonable pre-inspection yourself if you know Get your free special report NOW to what you’re looking for, and know- learn how to ensure a home inspecing what you’re looking for can help tion doesn’t cost you the sale of you prevent little problems from your home. growing into costly and unmanageable ones. This report is courtesy of Todd Gulinson, RE/MAX Fine properTo help homesellers deal with this ties. Not intended to solicit buyers issue before their homes are listed, a or sellers currently under contract. free report entitled “11 Things You Copyright © 2018

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