Business Assistance:
Introduction
Biography: Stephen Knehans
RESOURCES:
-Assistance to Establish New Business
-Cash Flow Analysis
-Financial Statement Analysis and Training
-Administration Analysis/Corrective Assistance
-Hiring/Firing Practices
-Hiring Assistance
-Financial Forecasts
-Lending Qualifiers
-Construction Job Costing/WIP Analysis
-Subcontract Analysis
-Government Contracts
-Latest Prices
So many small business entrepreneurs who have exceptional craft experience, who have the guts to open their own business, do not have the training or understanding of current laws and accounting principles to properly maintain cash flow and tax liabilities and so they quickly go back to gathering paychecks from others. This is sad because this country relies so much on the economic flow from the growth of small businesses.
What are your options?
No start-up small business can afford a CPA to train you on Financials, Cash Flow Projections, administration, hiring practices, job costing and creating financial packages for bonding and bank lines of credit. We all need competent CPA firms, but you should get ready for their services. Secondly, you could hire an in-house High End bookkeeper that is literally a Jack of all trades. This could be a huge overhead cost that could prove disastrous during business slumps.
My solution is to offer you a low cost, part-time and on-call resource that would provide you with thirty-two years of corporate controllership, accounting, personnel management, financial management, construction job costing, work-in-process schedules, retail pricing, manufacturing WIP, wholesale and retail sales analysis plus many more specialties. You would receive what you need when you need it, and without any long term commitment. As your understanding of the “Paperwork” side of business improves, your costs will dive. That’s the way it should be. Your business should grow as well as your profits. You should avoid the sudden price shock of managing your office and paperwork. You should not have to go into cardiac arrest when you take your shoebox full of paper into your tax person on the first year of operation. My retirement and disability from beating pancreatic cancer allows me the luxury of assisting you for much less than you could find at other places, and without any long term commitment from you.
Born and raised in the San Bernardino/Riverside, California area, Mr. Knehans then migrated to Montana, where he was jerked out of the University of Montana during his junior year and given an all expense scholarship to the U. of Viet-Nam.
Mr. Knehans started his career in accounting by proving himself for ten years as an accounting and budget officer for the U.S. Air Force Chaplaincy. This is where he learned the true meaning of accountability. This is also where he continued his college in Business Management, Accounting and Economics through the University of Maryland.
When the Viet-Nam Conflict ended, Mr. Knehans decided to step out into the civilian world. He started as an Operations Manager for Security Pacific Bank. This was during the disgusting time in banking where the names and faces of the years long customers where turned into numbers and statistics.
At the age of 31 it was a very easy decision to take the offer to become President and CEO of W.E. Manufacturing who contracted with the TEREX division of General Motors to sell new and used heavy construction equipment and parts throughout California. Under Mr. Knehans' direction the sales increased to cover the western seven states with international sales to Korea, Brazil, Japan and China. Terex Division was sold off by GM to a German company that proposed an unacceptable contract. After checking the average temperatures for Detroit, Mr. Knehans decided to turn down a lucrative offer by General Motors.
All these past experiences prepared Mr. Knehans to take the position of CFO, Corporate Controller and Board of Director for Palco Linings out of Stanton, California. Palco engineered and installed PVC liners for gold mining operations, waste dumps and nuclear waste sites. This international construction and manufacturing company was present in forty-one states, and seven foreign countries. His work centered on the daily task of negotiating and implementing multi-million dollar national and international contracts as well as overseeing all accounting and finance functions.
Having a great desire to participate in his children’s life, he gave up a powerful corporate position to take on the Controllership of a well established government electrical contractor in Riverside, California. Mr. Knehans assisted in the highly unusual growth of this construction company from six million annual sales to sixty million within five years. This growth was accomplished with cash flow only. Stronghold Engineering specialized in construction contracts for the Department of Defense and others government agencies.
While at Stronghold, Mr. Knehans worked with the Navy to create and implement Multi-phase and Multi-task service contracts which would property manage certain military facilities. This challenge of creating an instrument to outsource property services on military installations was exceptionally difficult due to Federal Acquisition Regulations and base personnel conflicts. These obstacles did not stop the multi-year successes with service contracts to Defense Logistics in San Diego, Marine Corps Logistics in Barstow, Defense Pay Center in San Bernardino, and one time assists at the Veteran’s Hospital in Loma Linda, CA.
After spending the last five years battling and winning the war against Stage 4 Pancreatic Cancer, Mr. Knehans is now advising business owners in the realm of finance and administration as well as counseling cancer patients.
Assistance to Establish New Business
Start off right. Get a full analysis of your capital requirements, overhead costs, production costs, advertising, equipment, taxes, computer system (hardware and software), and of course your paperwork costs. Have a short term and long term budget developed along with a cash flow analysis. Don’t underestimate the cost of doing business here in Southern California. Being prepared up front will save you extreme anxiety down the road. Those few hours could be the best money you ever spent.
Are your customers paying on time? Do you really need to give them credit? Did you even do a credit check on them? Are you going to have the funds to make payroll and pay taxes? When are you going to bring in enough money to care for your personal needs? How do you sit with your suppliers? Are you getting early pay discounts? These and a lot more questions can be answered with a proper cash flow projection sheet. When it is done properly you could see in advance if you need to establish or increase your line of credit. It would help immensely to avoid the number one pitfall of borrowing from IRS. We can set up the sheet and train anyone on how to use it for their particular benefit. Lack of cash flow is the number one enemy to small business. There is just no reason to loose if you are paying attention and listening to the pros.
Financial Statement Analysis and Training
Any successful business no matter the size has their hands firmly planted around their financial statements. When you bump into your banker at Starbucks and he asks how you are doing, you certainly don’t want to answer with a shy ok. You, instead, want to say, “Great. Our receivables are going up without being late, we’re getting more material discounts, and the bottom line is looking better each month.” You have just set the stage for a tremendous relationship. Like it or not, the bank is your partner and they have got to have a good feeling about you….constantly. You also say that you lost a job, but it would barely affect your profits because you were on top of it. They see everything. This monthly or quarterly piece of paper is of utmost important. And it has to tie to your receivables, payables, bank statement and every other document that is associated with your business. It seems like everyone and their dog wants your statement. Banks, insurance and bonding companies, suppliers, some general contractors, anyone who wants a piece of your business will be hounding you. Be prepared. Plus they are pros who can catch a misstatement in a heartbeat.
Administration Analysis and Corrective Assistance
What in the world is Administration? It’s the overall management of your business. It doesn’t matter if your business is in your kitchen, back of your truck or in a high rise, you must manage it properly. From the filing system to the legal documentations and reports, everything must be in place so nothing is overlooked. This area of business is probably the hardest for a small business to maintain. There are just not enough hours in the day to do everything. A good calendar and work schedule helps to develop the habits needed to keep this portion of your business from destruction. We can assist in establishing an excellent file system and calendar of reports, or redo a system that is in disarray. We can point you to corrective actions in personnel, overhead costs and other general management duties.
This area is a hotbed for lawsuits here in California. Not even major corporations can ever learn enough or keep up with current laws to stay 100% safe. However, basic knowledge can sure save a lot of headaches and lost production time. Now you’re starting to think just how much DO I have to learn to run a business of my own. Think about resources rather than being an expert in each field. This area is similar to accounting. Some people will catch on while others won’t. Your answers are a phone call away. There are many sources to keep you legal and good attorneys to help. Don’t be afraid to ask.
Ever hire anyone before? Do you know how to advertise? Do you know what you can ask and what are the taboos? Would you like background checks and prior employment checks that will protect you later on? We can assist you with this process. Small business owners usually hire on a whim and a gut feeling. The gamble is just not worth it. We can advertise and screen the top three applicants, then sit with you as you make your decision.
Most banks and bonding companies want to see forecasts of your cash flow financials. Sometimes they want as far as five years out. This crystal ball is probably the most difficult task in business. This takes years of practice and knowledge. It also takes investigation about your particular industry. Other words, they want to see how sophisticated you are in growing your business. The nuts and bolts do count.
When you take out a line of credit or loan at the bank or other source you will be given parameters that you have to meet on a monthly basis. Sometimes these can be pretty rough. Old receivables, government receivables and retentions are usually disqualified. You have to fight for them. Cash flow, work-in-process and late payables could also come into play. There are formulas for all theses that must be learned BEFORE the bank beats you up. These tools could be invaluable to the success of your business. We could review your monthly statements, apply the requirements of your loans, and let you know What to Say to your Banker and Lenders when you deliver those precious pieces of paper. We could also assist you in the review of new loans Before you sign the documents. Not every loan is good for your business and the competition for a piece of your pie is great. THEY are not the boss, you are. Please keep that in mind….always.
Construction Job Costing and Work-in-Process Analysis
Most construction software provides numerous ways to look at job costing. You can get confused quickly to say the least. Most contractors know what they see in the field, but can’t relate it to their paperwork. Things just don’t seem to balance. We can clear up that picture and teach you to look at job costing in a way that will trigger red flags. This is the first line of defense to keep a job from going south. Even if the original estimate was off, there are frequently ways to turn that around if you know all the facts. Sometimes there are no solutions you can do except look at the whole picture to strategize recovery. Thirty-two years of sorting out these situations would be on your side. We can help.
Do you have a real clear handle on your subcontracts? Are you aware of all the up-to-date lien laws? Is your subcontract form in compliance with accepted principles? Are you and your clients protected? If you have any doubts what-so-ever, then you need to have us take a look, pull up the latest references, and give you the tools that you need. When you’re a small company it’s too easy to pay make sub-contractor payments without proper material and labor releases. The days of faith and trust are gone, thank you my dear lawyer friends.
So you want to land some government contracts? Do you have any clue what is involved with that? There’s more paperwork and accounting then the mind can comprehend. However, many major contractors got started and grew fantastically well with government contracts. There are secrets to success that we are willing to share with you, but only if you are willing to put the proper effort forth to gain that success. Where do you go to find all the rules and regulations? When guided in the right direction, there are resources that literally hold your hand. Everything with government contracts is research, research and more research. This is not hard once you’ve entered the game, but we can certainly help you get into that game. Once again, call us for an appointment.
As of: Jan 1, 2008
| First Hour Consultation: | |
|---|---|
| No Charge | Consultation consists of Q & A to discover areas of concern and priorities. |
| Analysis Report: | |
|---|---|
| $650.00 Flat fee | Data & Operations Review with Comprehensive Analysis Report. |
|
No Charge for Analysis Meeting with Clients. |
|
| Implementation and Training: | |
|---|---|
| $70.00/hour at your site only. | No charge for work done away from your site. |
EXCESSIVE MILEAGE MAY APPLY
INVOICING TO BE PAID UPON PRESENTATION
InlandAssist Does Not Carry Receivables
Thank you for your Cooperation
