by MHolland | Jul 25, 2025 | Business Tips, Cloud-based Accounting, Systems
by MHolland | Jul 18, 2025 | Business Tips, Systems
As my Blog readers know, I am a big fan of Freedom (the reality and the app😁)…
This week I want to share with you a blog from the Freedom app on taking a digital detox.
Why is this so important for business? Because focus, like awesome service, has become a competitive advantage.
I use the Freedom app to block distractions that come in the form of notifications from messaging apps, emails, and the desire to look at the latest news!
What I have not been aware of is how often I pick up my phone. I think if most of us started tracking just the number of times we pick up the phone in a day, we’d be shocked. Even with the Freedom app.
Can you (be honest with yourself 😉):
- Go for a bike ride, to the gym, or for a jog without your phone?
- Go for dinner without your phone (or just leave it in the car)?
- Keep your phone off the dining table when eating?
- Go to an event without your phone?
- Work for 90 minutes with your phone in another room?
Apparently studies how that people unlock their phone on average 96 times a day! 😕Yikes!
What is the cost? Loss of sleep, less depth in your relationships, inability to focus, irritability, neck pain (from looking all the time).
The biggest cost is simply the inability to sustain focus.
Here is a test – can you read, in one sitting, a full chapter of a Classic book, like a novel written by Dostoevsky?
Try it. See how you go.
Here is the link for the full blog:
Digital Detox in 2025
One last note – did you know that most of the creators of digital content and software in Silicon Valley forbid their children from using smart phones?
Hmmm, I wonder why? Could it be the same reason that Colombian drug lords never use the addictive stuff they sell?
Thanks for reading…
by MHolland | Jul 11, 2025 | Accounts Payables, Accounts Receivables, Business Tips, Cash Flow, Systems
Entrepreneurs tend to put all their attention on the Income Statement…
They want to know how much their sales are, their gross profit, and, of course, net profit.
What is the Balance Sheet good for? It does not tell you anything about operations, right?
Wrong.
Here is something you may not have known – the Income Statement lives inside the Balance Sheet.
The two statements are intricately linked, joined at the hip.
The Income Statement lives inside the Equity section of your Balance Sheet.
Think of it like this – Net Profit, or Net Loss lives inside the Equity section of your Balance Sheet.
How to Fix a Broken Income Statement
Whenever I have looked at an Income Statement that I suspect is incorrect, or just a plain mess, I go the Balance Sheet to fix.
In fact, the only way to correct a messy Income Statement is by going to the Balance Sheet.
Because…
All the Dead Bodies are on the Balance Sheet
Let us look at one dead body that ends up on the Balance Sheet and is the most glaring one.
Inventory.
Inventory and Cost of Goods Sold, which is on the Income Statement, are interconnected.
When you buy goods for resale, they go to the Balance Sheet, as an asset.
Once sold, they move to the Income Statement as an expense. If you have a real-time costing system that tracks when items are sold, then you will have few problems.
The system is tracking as goods are sold and moving them to your Income Statement, as a cost, or expense.
Inventory Hides a Lot of Dead Bodies
When you have manufactured goods, or grown plants in the case of a grower, you may not be counting inventory every month.
If your inventory is over-valued on the Balance Sheet, then your cost of goods sold (an expense) on the Income Statement is under-stated.
If cost of goods sold are understated, then Net Profit is over-stated.
You are happy at the high profits, and it is a fake high because a dead body is living on your Balance Sheet – inventory that does not exist because it has been sold.
When does that dead body get unburied? When you do an inventory count, often at year-end. By then it is too late. You have relied on 11 months of over-stated Net Profits. Your happy feeling comes crashing down.
Culprit Number Two – Bad Debts
The other big culprit hiding dead bodies on the Balance Sheet is Accounts Receivable.
Past sales that ended up as Revenue on your Income Statement, may now be living inside your accounts receivable, dead as a doornail. Uncollectable.
The fix?
Well, first, try hard to collect them, or even send them to a collection agency if you have to.
If they are dead, move them to the Income Statement as Bad Debt expense.
Most people wait until year-end to cleanup, giving false numbers on your monthly Income Statements.
Culprit Number Three – Deferred Costs
Often business owners will defer costs under the premise that there is future value in those costs.
In other words, current expenses get treated as assets.
But are they?
Is there value in those costs being capitalized on your Balance Sheet.
Unless you can sell those capitalized costs as an asset, write them off. Software development is something that could be considered an asset. Most deferred costs should be written off.
Culprit Number Four – Under-Performing Assets
Old, worn out and unused assets should be removed and written off as an expense to the Income Statement.
This is less common a problem and can be done once a year at year-end.
Culprit Number Five – Deferred Revenue
Some businesses report as sales what should go on the Balance Sheet as a liability.
When you receive cash for something not delivered yet, that is a deposit, and should be recorded on the Balance Sheet, as deferred revenue.
Only when you have performed the service or sold the goods should that be moved to the Income Statement as sales.
Culprit Number Six – Unrecorded Liabilities
It is important to ensure that all supplier bills are recorded as expenses in the month incurred. These bills are expenses and could overstate your Net Profit by under-stating your expenses.
Also, if expenses are recorded in the incorrect period, it makes your monthly Income Statements have wild swings. One month shows a big profit, the next month a loss.
Culprit Number Seven – Unreconciled Loans
Loans and mortgages that carry interest should be reconciled and recorded each month.
The interest expense needs to be recorded on the Income Statement.
The above seven culprits cover most of the dead bodies that might be buried on your Balance Sheet.
Thanks for reading…
by MHolland | Jul 4, 2025 | Business Tips, Cash Flow, Selling Tips, Systems
Yes, you read that right.
You cannot increase sales.
Not directly, anyway. That is because sales are a result, not an activity. You cannot manage sales, profits, just like you cannot manage even weight loss directly—those are outcomes. What you can manage are the activities that lead to those outcomes.
This might sound simple, but it is one of the most misunderstood ideas in business. Let us fix that.
Stop Managing Outcomes. Start Managing Activities.
Let us use weight loss as an example. You cannot just decide to lose 10 pounds. What you can do is manage your eating habits and increase your physical activity. Those are the drivers. The weight loss is a result.
Sales work the same way.
You cannot just declare, “We’re going to increase sales!” and expect it to happen. Instead, focus on the activities that create sales.
The 3 Building Blocks of Sales
There are only three ways to increase sales:
- Increase the number of customers (of the type you want)
- Increase how often they buy from you.
- Increase how much they spend each time.
That is it. Every sales strategy fits into one (or more) of those categories. Let us break them down.
Get More Customers (The Most Expensive Way)
When people say, “I’m going to grow my business,” they always mean getting new customers. And yes, it is important—but it is also the most expensive strategy.
Marketing, advertising, lead generation—they all cost time and money. Worse, new customers often require the most handholding.
So yes, keep attracting new clients. But do not stop there.
Increase Purchase Frequency (Often Overlooked)
Want a smarter way to boost revenue? Get your existing customers to come back more often.
They already trust you. They have already bought from you. This is low-hanging fruit.
Ideas to increase purchase frequency:
- Send a monthly or quarterly newsletter with promotions or insights.
- Offer loyalty cards or referral bonuses.
- Pick up the phone and check in with past clients.
- Host client appreciation events.
True Story:
An accountant blocked off every Friday morning just to call clients and ask how things were going. Nothing pushy—just open-ended business conversations. The result? His revenue doubled. Clients appreciated the proactive care and naturally brought him more business.
Increase the Average Sale (Mastered by McDonald’s)
You already know the question:
“Would you like fries with that?”
That simple upsell script has added billions to McDonald’s bottom line. What is your version of the fries question?
Ideas to increase average transaction value:
- Bundle products or services into higher value packages.
- Upsell or cross-sell relevant add-ons.
- Implement a small price increase (even 5% can have a major effect)
- Train your team to ask value-focused questions.
Real Example:
One client raised prices 5% after a little convincing. Guess how many customers they lost? Zero. Loyal customers did not blink, and the increase went straight to the bottom line.
Think Compound Impact
Here is where it gets fun: if you improve each of the three areas by just 5%, the result is a compound growth effect that can add 20–30% more profit to your bottom line. Without finding a single new customer.
Want to see it in action? Try this quick exercise:
Profit Improvement Plan (Fill-in-the-Blanks)
| Component |
Current Position |
5% Improvement |
New Position |
| Number of Customers |
___ |
x1.05 |
___ |
| Purchase Frequency |
___ |
x1.05 |
___ |
| Average Sale ($) |
___ |
x1.05 |
___ |
| Sales Revenue |
___ |
= |
___ |
| Gross Margin % |
___ |
(same or better) |
___ |
| Net Profit |
___ |
(should grow!) |
___ |
Now subtract your current net profit from your new projected one.
That is your Profit Improvement Potential—from managing the right activities, not chasing the result.
Final Word
Stop trying to “increase sales.”
Start doing the things that lead there.
- Get more of the right customers.
- Stay in touch and serve them often.
- Raise your average sale with simple strategies.
And most of all—track what matters. Because what gets measured gets managed.
Thanks for reading…
by MHolland | Jun 27, 2025 | Business Tips, Remote Work, Systems
What is the difference between motivation and discipline?
Motivation is that flush of romantic dopamine that gets you all charged-up about starting anything new that excites you. A new business, a new garden, a new romance, a trip.
The shelf life of motivation? Anywhere from 3 seconds to 3 days, depending on the depth of your desire.
When starting a new business (or keeping one going) motivation is short lived. The hard work and hurdles soon take over and the excitement of that first rush is long forgotten, like a first date.
Discipline is needed. It is needed to keep the momentum on that motivation with what you started.
Discipline can best be accomplished with small, micro habits, done daily. I use a really great app, as most readers of my blog know, called Habit Tracker.
Disciple and motivation are both needed…
For an in-depth read on this topic, check this out:
Motivation Versus Discipline
How Your Daily Routine Transforms Your Workday
Routines operate like habits. The added ingredient is routines are usually set at the same time each day.
A routine could be defined as a “Scheduled Habit”.
The key to productivity is to set your daily routine as a rhythm.
For more on this topic, check out this blog:
Daily Routine – Transform Your Workday
Thanks for reading…
by MHolland | Jun 20, 2025 | Business Tips, Systems
As readers of my Blog know, I love using an app called Freedom…
The Freedom people also write great blogs.
The one I am about to share with you revolves around 3 words – “I’m locked in”.
No, they do not mean jail. The opposite. It is when you are a zone, in hyper-focus, and things get created and done better, faster, and with more originality.
Okay, so you are thinking, what is the big deal here?
Consider this – with all of the distractions hitting us in our always-on culture, humans have now devolved to a shorter attention span than a goldfish. The goldfish beats us by one second – 9 seconds versus 8 seconds.
(When I read that, my first thought was – how do they measure that? 😂)
It is a brilliant blog, well worth reading. One reason?
How about this – “those who can achieve deep focus are becoming exponentially more valuable”.
We intuitively know it is true because when you are hyper focused, in the zone, you just feel great.
I always wondered if sequestered monks would get bored. They do not look bored – they look serene and fulfilled.
Maybe they have always known something that we are just starting to get…
…that life spent distracted is not really living, that being focused on meaningful things, and not distracted is the key to happiness.
Here is the blog in full:
Locked in Focus
Thanks for reading…
