Let us first get the gloomy stay out of the way: out of all small businesses that fail, 82% do so due to issues related to cash flow. Some of the other reasons include:

Starting with less than enough money
Not having a strong business plan
Getting the pricing wrong
Being overly-optimistic
Failing to recognize or accept weaknesses
A lot of small business owners are already starting off with shaky knees and doubtful minds – which is why it is no wonder that they often throw in the towel at the first sign of trouble. However, as Tommy Shek discusses in this blog, entrepreneurs need to have the exact opposite reaction.

Even if the odds are stacked against you, there are a few things that you can do to turn things around for your business.

Ways to Save a Struggling Business:
Identifying the Source of the Problem:
Remember that there is no smoke without a fire and, if your business is struggling, Tommy Shek says that you need to identify the root cause behind it. Perhaps the reason is poor performance from key members of your staff, lack of motivation, or a dysfunctional business model. Whatever the cause, it needs to be pinpointed before you can go about remedying things.

Conducting a SWOT Analysis:
 A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is extremely useful for any business. According to Tommy Shek, it can help assess its current performance, identify what is going wrong (inadequate operational processes, a lack of product-market fit, or an incorrect pricing model, for instance), and learn about the areas that offer room for improvement.

Establishing SMART Business Objectives:
Come up with a list of objectives for your business, while keeping the SMART model in mind. SMART is an acronym for:

Specific: the objectives need to be clear and fully understandable

Measurable: You must be able to clearly determine once the goal has been accomplished

Achievable: The goal should be practical and accomplishable

Relevant: Should be connected to your larger business vision

Time-specific: Must be attached to specific dates and deadlines (for instance: increasing the website traffic by 20% over the next three months)

After outlining your objectives, Tommy Shek suggests developing a plan that incorporates these SMART objectives. While creating the plan, focus on the steps you will need to take to achieve the objectives you just set out, as well as on the amount of time it will take to achieve those goals.

Managing Your Cash Flow:
As we mentioned at the start of the article, 82% of all businesses that fail, do so due to cash-flow issues.

To avoid becoming a part of that statistic, you need to develop a cash flow forecast that will provide insights about the cash inflows and outflows. Use this forecast to anticipate the expenses and revenue in the short, medium, and long terms – this will help you estimate the amount of money that you need in the bank to manage your day-to-day expenses. You can also improve your business cash flow by sending timely invoices and following up with customers who are yet to pay.

Final Word:
To sum up, the only thing more challenging than being a small entrepreneur is being a small entrepreneur whose business is struggling to survive. However, not all is doom and gloom and, using the above pieces of advice by Tommy Shek will help you successfully navigate this trying period.

Tommy Shek - Ways To Save A Struggling Business.

Before we get down on the different equity types, it is important to be clear about what equity really is.

Essentially, business equity refers to ownership in the company. Equity can either be the amount invested in the business, or the total value of the business.

Equity is measured in terms of assets and liabilities, using the following formula:

Equity = Assets-liabilities.

You can further break down equity in to owner’s equity and stockholder’s equity, each of which are explained below:

Owner’s Equity:

This refers to the ownership of the business, and can be calculated by subtracting the business’ assets from its liabilities. In other words, the amount of owner’s equity is the amount of capital that you have in the business.

Owner’s equity is commonly found in partnership and sole proprietorship businesses.

Stockholder’s Equity:

Stockholder’s equity (also referred to as shareholder’s equity) is the amount of assets that the shareholders receive, once the liabilities have been deducted.

Stockholder’s equity is most common in businesses with a corporate structure. 

Now that you have a fundamental understanding of what equity is and how it can be calculated, we can get down to talking about the types of equity as explained by Tommy Shek.

Types of Equity Accounts Explained:
An Explanation of Common Stock:
Common stock (also referred to as common shares) is a type of equity that represents the initial investment made in a company. This kind of equity gives the equity holders rights to certain business assets.

Generally, common equity is recorded at its par value (also referred to as face value). Therefore, the total value of the common stock can be calculated by multiplying the par value with the number of issued shares.

Tommy Shek says that common shareholders have a say in how the business is run, alongside having the following responsibilities:

Board elections
Officer appointments
Determining business policies
Corporate governance
Preferred Stock:
In many ways, preferred stock is similar to common stock. The key difference is that owners of preferred shares receive their periodic dividends before the common stockholders – in other words, these shareholders are ‘preferred’ over their common stock counterparts.

For instance, let us assume that company A’s annual earnings are $500,000. The preferred dividend payable is $400,000 and the common dividend payable is $300,000. The preferred stockholders will get their full amount of the dividend, while the common shareholders will only receive the remaining $100,000 ($500,000-$400,000).

However, Tommy Shek explains that preferred stockholders do not get much of a say in how the company is run, and generally do not have the responsibilities and voting rights associated with common shareholders.

Preferred stock is generally purchased by short-term investors who do not wish to hold the common shares long enough to ride out any dips in the stock price.

 Final Word:
To sum up, if you are considering setting up a corporation, or looking to change the structure of your sole proprietorship or partnership, it is important to understand the two main types of business equity and how they are different (and similar) to each other. We hope that this article by Tommy Shek proved helpful in that regard.

Tommy Shek - Types Of Equity Accounts Explained.

Any company, no matter how big or small must have a strategic marketing plan in place to guarantee ongoing success and growth. To fully differentiate themselves from the competition and gain an advantage, brands must invest in distinctive and cutting-edge marketing strategies. Tommy Shek notes that effective ideation, planning, and carrying out personalized marketing campaigns as well as strategies can assist organizations in achieving their goals.

Businesses have access to a wide range of marketing tactics, but not all of them may be appropriate for your firm. The most crucial step is choosing the strategies that will work best for your company, products, and services.

How to Get Marketing Right in the Modern Era
Markets have become extremely competitive during recent times. The only way to stay ahead of the competition is through appropriate marketing strategies that are in tune with the times. These include some of the following:

Use of Social Media
It is crucial for businesses to have a significant social media presence in the modern, digital world. Social media sites like Facebook, Twitter, and Instagram give businesses a great chance to interact with their clients and generate talk about their goods and services. Tommy Shek asserts that an effective social media marketing plan will assist you in connecting with your target market, developing relationships, and ultimately winning their loyalty.

Email Promotion
Maintaining contact with your customers while promoting your goods or services is easy with email marketing. Email can be used to distribute newsletters, updates, exclusive deals, and more. This kind of marketing is incredibly successful at fostering connections and boosting purchases.

Pay-Per-Click Marketing
In pay-per-click (PPC) advertising, companies are charged a fee each time their internet advertisement is clicked. This is a powerful strategy to increase website traffic and lead generation as per Tommy Shek.

Using Influencers
Influencer marketing is a recent but incredibly powerful marketing strategy. Working with social media influencers to market your goods or services is involved. You may reach a wider audience and raise awareness of your business through this kind of marketing.

Conventional Marketing
Print, television, and radio advertising are still effective and should be a part of any marketing strategy. If you want to reach a larger audience, even though these approaches could be expensive, you should still take them into consideration.

Public Relations Is by Far the Best Advertising Technique
According to Tommy Shek, firms should employ public relations (PR) as another crucial marketing strategy to develop ties with their clientele. Using media outlets like newspapers, magazines, television, and radio to promote your brand requires public relations (PR). Building reputation and trust are crucial components for any organization, which is what this kind of marketing does for you.

Event Promotion
Marketing through events is a great approach to advertise your goods or services. It entails planning occasions like trade exhibitions, conferences, seminars, etc. to generate interest in and awareness of your brand. This kind of marketing is quite good at bringing in leads and increasing revenues.

Personalized Direct Marketing
Direct marketing is a style of marketing that puts the customer first and involves direct communication. Direct mail, telemarketing, email, or even text messaging can be used to accomplish this. Direct marketing is a very powerful tool for generating leads and promoting your goods or services.

The Conclusion
These are just a few of the best marketing ideas, in Tommy Shek’s opinion, that companies should think about including in their marketing plans. You can get impressive results by using even a couple of these strategies.

Tommy Shek - How To Ramp Up Business Marketing Efforts.

No new company or brand can hope to succeed in today’s corporate climate without making a significant investment in digital marketing. Only businesses that can keep up with the most cutting-edge promotional tactics will truly succeed. It is reasonable to assume, though, that keeping up with the most recent marketing trends, tactics, and platforms while still managing a firm can feel unattainable.

Tommy Shek notes that employing a digital marketing agency might be a desirable and successful remedy because of this. Working together with a skilled group of digital marketers may, when done right, drastically alter the game for your company or brand. But like with anything, there are several factors you should take into account before making any decisions.

Things to Think About Before Hiring a Digital Marketing Agency
What Services Are Offered By Them?
When looking into hiring a digital marketing agency, the first thing you should think about is the services they actually provide. Make sure the marketing agency you’re thinking about specializes in the strategy that will work best for your company or brand. For instance, you will probably need to concentrate on B2B marketing if you are selling goods or services to other firms, Tommy Shek explains.

Is Their Market Reputation Good?
Next, spend some time looking at the agency’s reputation. For more information on how it is to work with them, read internet reviews and client testimonials. You can also make direct contact with the organization and get references.

What Are Their Business Operations Like?
It’s critical that you comprehend the digital marketing agency’s procedure before making any judgments. How do they approach creating and carrying out campaigns? What kind of analytics and reporting do they employ? So that you are certain they are competent, request in-depth responses to these questions.

Prior Experience in Your Field Is an Important Consideration
It’s crucial to look for a digital marketing agency with experience in your sector if you want to be certain that it can handle your unique needs. By doing this, you can be sure that they are aware of the difficulties and opportunities unique to your industry.

What Is Their SEO Strategy?
According to Tommy Shek, SEO is an essential component of any digital marketing plan, so you should confirm that the agency you choose has a thorough understanding of how it operates. Inquire about their strategies for link-building, on-site optimization, and keyword research.

What Types of Social Media Marketing Tactics Do They Employ?
Social media is a key component of digital marketing. You need to work with a company that can create and implement a successful social media marketing plan. Inquire of them how they use social media sites like Twitter, Facebook, and Instagram.

Do They Provide Any Further Services?
Some digital marketing firms offer other services in addition to the ones listed above that can help your company or brand. These could involve branding, email marketing, and web design and development.

How Much Do They Charge?
The cost of hiring a digital marketing agency is the last thing you should think about. Get a thorough breakdown of their prices so that you are aware of exactly what you are paying for.

The Conclusion
Tommy Shek believes that by taking into account the points mentioned above, you’ll be in a better position to decide whether or not employing a digital marketing agency is ideal for your company or brand.

Tommy Shek - Things To Look For In A Digital Marketing Agency.

People in the corporate world understand that marketing plays an important role in the survival and growth of a company. Whether your business is new or old, large or small, marketing is vital to success. The days when a company could rely on print advertisements and personal selling to bring in customers are gone. Today, businesses need to use data and analytics to understand what customers want and how they can be reached.

According to Tommy Shek, marketing analytics is the process of measuring, managing, and analyzing marketing performance to optimize outcomes. It’s no secret that marketing analytics can be complex and confusing. But, that doesn’t mean companies should avoid using them altogether. In fact, many businesses make common mistakes when it comes to marketing analytics that can be easily avoided.

Common Errors Businesses Make In Marketing Analytics –
1. Not Defining Goals and Objectives
One of the most common mistakes businesses make is not defining their goals and objectives from the start. Without a clear understanding of what you want to achieve, it will be difficult to set up an effective analytics program. Take the time to sit down and determine what your specific goals and objectives are. Once you have a good understanding of what you want to achieve, you can develop a plan to get there.

2. Not Collecting Enough Data
Another common mistake is not collecting enough data. Marketing analytics relies on data to be effective. If you don’t have enough data, you won’t be able to make the necessary calculations, and you won’t be able to get an accurate picture of what’s going on. Make sure you are collecting data from all sources, including social media, website traffic, email campaigns, and more.

3. Not Cleaning the Data
Once you have collected the data, it’s important to clean it up before you start analyzing it. Data that is not clean can lead to inaccurate results. There are a number of ways to clean data, including removing duplicate entries, standardizing formats, and more. If you don’t clean your data, you run the risk of making decisions based on inaccurate information.

4. Not Analyzing the Data
After you have collected and cleaned your data, it’s time to start analyzing it. Tommy Shek points out that this is where many businesses make a mistake. They either don’t analyze the data at all, or they don’t do it properly. When analyzing data, you need to look at the big picture and identify trends and patterns. This will help you make better decisions about your marketing efforts.

5. Not Acting on the Data
Once you have analyzed the data, it’s important to take action based on what you find. Many businesses make the mistake of collecting and analyzing data but never taking any action. The whole point of marketing analytics is to use the data to improve your marketing efforts. If you don’t take action, you won’t see any results.

6. Not Measuring Results
Another common mistake is not measuring results. Once you have implemented changes based on your data, you need to measure the results to see if they are working. This will help you fine-tune your efforts and make sure you are on the right track. Without measurement, it will be difficult to know if your marketing analytics program is successful.

7. Not Updating Data Regularly
Marketing analytics is an ongoing process. It’s not something that you set up once and then forget about. You need to update your Data regularly to ensure that it is accurate and up-to-date. Marketing campaigns and strategies change all the time, and your Data needs to reflect that.

Bottom Line

Tommy Shek points out that avoiding these common mistakes will help you set up a successful marketing analytics program that will improve your marketing efforts and help you achieve your goals.

Tommy Shek - List Of Common Mistakes Businesses Make In Marketing Analytics.

Join us in an insightful journey as we demystify complex bookkeeping procedures. From understanding the evolution of bookkeeping, basic concepts, to detailed discussions on advanced bookkeeping procedures, and the role of technology in simplifying these processes. Discover how accurate bookkeeping can lead to informed decision-making and robust financial forecasting, while avoiding common mistakes. Whether you're a seasoned professional or a newcomer to the world of finance, this podcast will equip you with the knowledge to navigate the bookkeeping landscape confidently.

Tommy Shek - Demystifying Complex Bookkeeping Procedures for Businesses.

This podcast episode takes you on an informative exploration of income recognition. We dissect its concept, the critical principles governing it, and the different methods of income recognition. Understand how it impacts financial reporting, learn about the regulatory frameworks guiding it, and how to avoid common mistakes in this process. Whether you're navigating the basics or looking for deeper insights into financial accounting, this episode offers valuable knowledge for effective business management. #TommyShek #IncomeRecognitionBasics #AccountingEssentials #FinancialReporting #BusinessStrategy

Tommy Shek - Mastering the Basics of Income Recognition.

In this podcast episode, we delve deep into the realm of subordinate bookkeeping. Discover how tracking minor transactions can provide a more comprehensive financial picture for your business, the steps to implement this system, and how to overcome potential challenges. We also explore the integration of technology in subordinate bookkeeping, enhancing its efficiency and accuracy. This episode is a valuable resource for anyone looking to strengthen their financial management skills. #TommyShek #SubordinateBookkeepingExplained #FinancialAccuracy #BusinessOperations #AccountingDetail

Tommy Shek - Subordinate Bookkeeping: A Primer for Businesses.

This podcast offers a thorough exploration of the mergers and acquisitions process. From understanding the basics, planning and strategy development, to the intricate steps of identifying targets, conducting valuations, and executing the deal. Learn about the vital roles of financial advisors, legal considerations, and the post-merger integration process. We also address common challenges and the cultural impact of M&A. This episode is an essential listen for anyone interested in or currently navigating the M&A landscape. #TommyShek #MergersAcquisitionsGuide #CorporateGrowth #BusinessStrategies #StrategicAcquisitions

Tommy Shek - Navigating Mergers and Acquisitions: A Step-by-Step Guide.

Tommy Shek - Mastering Capital Expansion: Strategies for Sustainable Growth.

In this podcast, we explore the multifaceted strategies for capital expansion. Learn about the key concepts and strategies, including the role of sustainable growth, how to measure success using KPIs, and navigating potential risks. We also provide a step-by-step guide for building a capital expansion plan. This episode is a must-listen for business leaders aiming to strategically and sustainably expand their business horizons. #TommyShek #CapitalExpansionInsights #BusinessGrowthStrategies #SustainableDevelopment #StrategicInvestment

Tommy Shek - Mastering Capital Expansion: Strategies for Sustainable Growth.

Tommy Shek is a consulting partner in various organizations.
Tommy Shek’s primary focus has been on planning and disclosing financial summaries for both publicly and privately held enterprises.
He has a lot of experience with complicated bookkeeping procedures including stock-based compensation (ASC 718), subordinate bookkeeping (ASC 815), convertible liabilities and warrants (ASC 470), income acknowledgment (ASC 606), and mergers and acquisitions (ASC 805).
In addition to his knowledge of SEC financial disclosure, Tommy has advised clients throughout the first sale of stock, public obligation contributions, capital increases through obligation, and value exchanges.

Tommy Shek previously worked at RSM US LLP, the fifth-largest accounting firm in the U.S., where he gained crucial experience in providing review administrations to projects of up to $700 million in revenue for both publicly traded and privately owned companies.
He has worked with clients in a variety of businesses, including assembling and distribution, consumer and contemporary goods, SAAS, and internet trading.

Additionally, Tommy Shek has significant expertise working with foreign companies listed on US markets, including companies from China, Europe, Hong Kong, and Canada.Tommy also provides cautionary forms of help to both domestic and foreign organizations aiming to complete a global opening up and auxiliary public contributions in the US.

Tommy Shek - Mastering Capital Expansion: Strategies for Sustainable Growth.

Tommy Shek

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