Preaching Prudence Creatively

Return to main page


Digital Library > Acquiring and Managing Finances > Financial analysis"Preaching Prudence Creatively"

Another way to get employees to understand your cost structure is to make a game of it like Jay Goltz has.

Founder of Artists' Frame Service, a Chicago-based company generating more than $10 million in annual sales, Goltz created a dynamic demonstration — "Showing Where the Money Goes." His goals: Make it clear just how expensive running a business is, and inspire employees to hold down costs.

A manager plays a customer with a $100 framing job. Using oversized money for easy visibility, the "customer" pays dollar by dollar as Goltz details each expense for the order: advertising, marketing, workers' comp, materials, salaries. At the end, only $4 or $5 remains before taxes. The final profit is only a buck or two.

Source: "The Street Smart Entrepreneur" by Jay Goltz, Addicus Books Inc., 1998.

Related Articles

Cheap Imports Got You Down? Fed May Help

Show Me the Money: Online Financial Services

How to Analyze Profitability

Selecting Your Banker

Banks Say They Are Lending! Where’s the Money?



Acquiring and Managing Finances

Articles in our Entrepreneur’s Resource Center appeared in print and online newsletters published previously by the foundation. More than 1,000 articles can be found in the categories below, addressing timeless challenges faced by entrepreneurs of all types.