Cary Prejean, a business advisor, shared his journey from accounting to helping businesses find hidden profits. He emphasized the importance of understanding financial statements and using dashboards to track key performance indicators (KPIs) like cash flow, receivables, and payables. Prejean highlighted the need for businesses to have well-documented processes and to focus on strategic planning and profit acceleration. He also discussed the significance of having a clear vision and goals for personal and professional satisfaction. Prejean's methods have helped businesses double their net profit in 9-12 months, stressing the importance of consistent results and future-oriented strategies.
Resources
- Connect with Cary Prejean on LinkedIn.
- Visit Cary Prejean websites Home - Strategic Business Advisors, LLC
- Visit Cary Prejean | Strategic Business Advisors, LLC to download his books.
- Best Business Podcast with Daryl Urbanski - Where you can find more insightful interviews like this one.
Episode Highlights
Cary Prejean's Background and Early Career
- Daryl Urbanski introduces Cary Prejean, highlighting his role as a business advisor and author.
- Cary shares that his father was a doctor, and he initially considered a career in law but chose accounting instead.
- Cary explains his early observations in accounting, noting that most business owners struggled with reading financial statements and understanding key performance indicators (KPIs).
- He emphasizes the importance of managing by the numbers and using dashboards to track KPIs and cash flow.
Challenges in Business Ownership
- Cary discusses the common misconception among business owners that selling more is the only solution to profitability issues.
- He shares a story about a client in the early 80s who couldn't see the financial reality of high-interest rates and went bankrupt despite having a successful business for 30 years.
- Cary Prejean explains the importance of understanding financial statements and using dashboards to identify problems early.
- He compares running a business to driving a car, where the dashboard alerts you to potential issues before they become critical.
The Role of Processes in Business
- Cary explains that most small to medium-sized businesses can be managed by one to three people if processes are well-documented and followed.
- He uses the analogy of a franchise to illustrate how a system of processes can lead to consistent results and scalability.
- Cary emphasizes the importance of having a process for everything, from customer acquisition to inventory management.
- He discusses the role of entrepreneurs and their tendency to seek big, fast results, which can sometimes lead to inconsistency.
The Importance of Financial Analysis
- Cary Prejean highlights the need for business owners to understand their financial statements and use dashboards to track key metrics.
- He explains that dashboards should include cash projections, sales tracking, receivables aging, payables aging, and other key indicators.
- Cary shares a story about finding $120,000 in uncollected revenue for a client by focusing on account receivables.
- He emphasizes the importance of collecting revenue and managing cash flow to ensure business stability.
Strategies for Business Success
- Cary discusses the eight critical success factors for business, including self-efficacy, market intelligence, strategic planning, and money management.
- He explains the importance of having a system of processes and using dashboards to monitor key metrics.
- Cary Prejean shares his approach to helping business owners double their net profit in nine to 12 months by implementing 12 key strategies.
- He emphasizes the need for business owners to design their businesses for the future and have a clear vision for their goals.
The Role of AI and Technology in Business
- Cary Prejean discusses the importance of integrating AI and automation into business processes to stay competitive.
- He shares his skepticism about geopolitical changes but acknowledges the potential impact of Trump's policies.
- Cary Prejean emphasizes the need for business owners to stay informed about technological advancements and market trends.
- He discusses the potential for AI to revolutionize various aspects of business operations, from customer service to inventory management.
Personal Reflections and Advice
- Cary Prejean shares his personal journey and the lessons he has learned from working with business owners over the years.
- He emphasizes the importance of having a clear vision and goals for both personal and professional life.
- Cary advises business owners to focus on creating multiple streams of income and designing their businesses for long-term success.
- He encourages business owners to think about their ultimate satisfaction and to live their lives on purpose.
Final Thoughts and Contact Information
- Cary Prejean shares his contact information, including his LinkedIn profile and websites, where business owners can access his books and resources.
- He emphasizes the importance of having a system of processes and using dashboards to monitor key metrics.
- Cary Prejean encourages business owners to focus on their goals and to live their lives with purpose and ambition.
- Daryl Urbanski thanks Cary Prejean for sharing his insights and experiences, and the interview concludes with mutual appreciation.
Expertise: Business Growth, Sales, Marketing Automation, Leadership