 
								Financial leverage
August 1, 2012 By Carl Hughes
Often the goal of the independent business owner is to attain a level of success achieved by growing…
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								Often the goal of the independent business owner is to attain a level of success achieved by growing…
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								To reach their potential, companies first must have financial tools in place.
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								Higher wholesale propane costs press need for working capital
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								Historically, a number of consistently profitable operators in the retail propane industry have chosen to finance growth through their company’s annual earnings. This is an overly simplistic and, frankly, shortsighted view of how to finance growth.
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								In this second column of a series, we address the financial fundamentals of a startup retail propane operation. This two-dimensional visual is useful in talking about the important financial components of your startup operation.
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								All facilities and equipment deteriorate with use, weather and age. While we expect to replace certain capital items, many of us do not plan well for this significant expense.
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								Many family owned businesses in this industry do a lot of things very well, yet can blunder terribly when it comes to financial matters. These errors can cost the family significant value and prevent it from achieving the very goals it set out to achieve when the business was started.
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								Continued company growth depends on growing and retaining a strong customer base.
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								We all are basically in the same business, yet it is a curious fact that many of us see value in a very different way. This difference is important to understand as we attempt to grow and presumably increase the value of our companies.
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								This is the eighth in a series on business topics inspired by the 20th century business management icon Peter Drucker.
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