I recently spoke to a business owner who was in a real bind - an inventory bind. He had gotten caught in the inventory trap.

A very influential customer had called and said they were considering placing a big order.  The customer asked if they would be able to handle it.  The owner did the math and said yes.  If he wanted to fill the order, he would need more inventory. 

He immediately called his supplier.  The supplier said, yes, they could produce it. To be ready for the “big order”, the business owner asked them to start.  The inventory began arriving a few days later....

I recently met with a business owner and I asked my standard first meeting question, “So what information do you use to run your business?” After almost ten years of asking that question to business owners, I continue to be amazed at the responses I get.

“Well, I know I have some reports. Let me see if I can find them…oh, here they are.” Hands me sealed envelope.

”Data, have we got data!” Then he hands me 30 pages of metrics and reports.

And then the infamous, “Here you go – hot off the press. Here are my tax returns – federal and state” (this is usually in September and the returns had just been filed for the prior year).

When I was growing up in the CPA world, and then as I started in the public company world, I noticed we spent a lot of time on the...