Molen Model for Business Mastery

Molen Model for Business Mastery

Most business owners are in business for the purpose of making money. There are usually other factors, but this is a major driver. Wouldn’t it make sense to consult with someone on a regular basis to make sure that your business is designed and aligned to exactly that? Our Business Mastery process focuses not only on the financial aspects of your business, but takes a step back to analyze your business holistically.


Over the last 40 years, we have refined our processes and systems to more effectively help business owners like you. Each time we sit with a new business owner, we dig a little deeper and delve into the secret habits of successful businesses.  At Molen & Associates, we are education focused and want you to be able to benefit from the tips and tricks we have picked up over the years. During our “Needs Analysis” consultations, we walk step-by-step with you to find areas to focus on for optimal business growth. These steps include: Foundation, Record, Analyze, Comply, Forecast, Breakthrough.

Foundation

Why do most business owners run their businesses without a solid foundation? You wouldn’t think of building a house without putting that essential first layer into place, would you? A solid foundation can be as basic as ensuring you are set up with the correct entity. It also includes having a vision or plan for your business and developing systems and processes to run the day to day affairs of your business. One piece of a solid business foundation that most businesses have in common is that they don’t blindly handle customer satisfaction—they carefully monitor their clients’ satisfaction every step along the way. The reason for this is simple: On average, it costs five to six times more to get a new customer than to keep a current one. So simply put, it’s more cost effective to put your effort into keeping your customers happy than to focus efforts on marketing to new customers.

In addition to being more cost effective, keeping your customers happy can bring you additional business. In one study conducted, as much as 14% of a company’s business came from customers who were referred by current customers. Happy customers will also be recurring customers; people are 10% less likely to shop around if they’ve used your company before and were satisfied with the experience.

Record

The reason we designed this model as a pyramid, beginning with the bottom as a foundation building to the top is because each layer builds on the previous. 

You need to have a foundation first. Once this first layer is more or less in place, you can begin worrying about record keeping. If you skip forward to the next steps, you cannot complete the analysis, compliance or forecast steps and definitely not the breakthrough step without these first two stages of the model.

Bookkeeping is important in order to maintain accurate financial records. Yet still, many businesses fail to implement this integral process. Besides the fact you are required under law to maintain accurate books and records, doing so will save you frustration later on.

While it may not seem like much, poor accounting and record keeping is one of the top reasons businesses fail. Without bookkeeping and accounting, you are blindly driving your business. 

Analyze

If You Can’t Measure It, You Can’t Improve It. Management thinker Peter Drucker is often quoted as saying that “you can’t manage what you can’t measure.” Drucker means that you can’t know whether or not you are successful unless success is defined and tracked.

Analysis is a way to measure the profitability and track your performance. The product of bookkeeping is financial statements. Financial statements should be regularly generated and used for analysis.

While analyzing financial statements, you can track your cash inflows and outflows and many other metrics that will help you learn more about what is working or not working in your business. 

While financial analysis is important in your business, the “analyze” piece can also be applied to other aspects of your business such as marketing, sales, operations, HR, and other key functions.

Comply

RCompliance means following the regulations set by any governing bodies in your industry. If you are in business in the United States, this means following GAAP principles, filing tax returns and payroll reports. If you build your business starting with Foundation, Record and then Analyze, you should have accurate financial statements. 

One of the most important uses of your financial records is to help you comply with federal and state tax laws and prepare your annual tax return. Doing this and keeping a good bookkeeping system will help make dealing with Uncle Sam relatively painless. 

Planning is the key to successfully and legally reducing your tax liability. By looking forward at what your future plans are, you can reduce the amount you pay in taxes and still keep your business in compliance.

Forecast

You’ve likely heard about the importance of writing down goals for your personal life. According to a 1979 study conducted by the Harvard MBA program, writing down goals for your future will make a huge impact on your lifelong success. In this study, they interviewed a number of graduate students and asked, “Have you set clear, written goals for your future and your plans to accomplish them?”

Of those surveyed, only 3% had written down their goals and plans. 13% stated that they did have goals but had not written them down. 84% of the respondents stated they did not have any specific goals at all. When these students were interviewed again ten years later, the differences in their levels of success were astounding.
On average, the 13% who had unwritten goals earned twice as much as those who had no goals. And the 3% who had written their goals down? On average, they were earning ten times the amount of the other 97% of their class!

So what does this mean for your business? To put it simply, writing down the goals you have for your business will be the foundation for future success; however, surprisingly, 46% of firms don’t have a strategic plan or goal for their business. These goal-lacking firms experienced significantly less growth than the firms that did have written goals and plans.

Breakthrough

Getting your team on board and ensuring they understand your goals will encourage employee engagement. However, suffice it to say that engaging your employees with an inspiring vision and a clear goal will help your business experience exponential growth and success.

Earlier, I mentioned a quote by Peter Drucker. Another famous quote by him is “leadership is doing the right things.” My question for you is – Are you doing the right things to improve your business?

Don’t Wait – Start today!

So now that you have the secrets of the most successful accounting firms out there, what else are you waiting for? Start implementing these changes in your own business today, and watch your business grow! You not only measure performance so you can improve it, but you instantly spot weaknesses in your company. And those are the areas you should focus your attention on. We would love to sit down with you for a Needs Analysis Consultation and even help you integrate some proven solutions to improve your business. 

Latest News

Dates to Remember

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Needs Analysis

Free One Hour Consultation for any new business owner looking for an advisor to help them with their taxes or financials.

Latest News

The Small Business Owner’s Guide to the CARES Act

As a result of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) passed by the Senate on Wednesday March 25, 2020 and passed by the House of Representatives and signed into law by the President on March 27, 2020 provides multiple avenues of relief...

Amending Your Tax Return – the How, Why and When

When should you amend your tax return? So, we are all on the same foot, amending your tax return is basically sending the IRS a new tax return, correcting errors made on the last tax return you filed for that year. You technically can amend more than once, but it is...

Coronavirus Relief Bill “Phase 3”

This is a summary of Phase 3 of the bill BEFORE it was published. Read more on the passed bill and what it means for your business here.   There is a lot going around the media and it is hard to stay up to date. One of the hardest things as a business owner is...

Coronavirus Relief Bill “Phase 2”

In addition to the extension of the tax filing deadline to July 15, 2020, the Emergency Families First Coronavirus Response Act (H.R. 6201), has now been signed into law by President Trump and takes effect April 2. It will remain effective until December 31,...

Small Business Coronavirus Resources: SBA Loans

This article was written before Phase 3 of the CARE Act was published. Read more on this here. There is a lot going around the media and it is hard to stay up to date. One of the hardest things as a business owner is getting access to good information. It is our...

How Can I Talk to a Live Agent at the IRS?

For many taxpayers the most frustrating part about doing their taxes is getting ahold of a real person at the IRS. The IRS is understaffed and unprepared to take on the daily volume of phone calls  they receive. Unfortunately, this has caused callers to struggle with...

What’s the Deal with the COVID-19 Tax Extension?

***EDIT: On 3/20/2020, “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties,” Mr. Mnuchin said on Twitter.*** Here’s the short and sweet answer: The tax-filing deadline will remain April 15, but the IRS...

Don’t Let Your Finances Get the Virus

While it may not seem like it at first, I promise this won’t be another news article to drive more hysteria. There is already plenty of that going around. It also won’t be a regurgitation of the CDC advice on how to stop the virus from spreading. Coronavirus not only...

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Security extra jobs are a hot button issue for officers and their unions. Some argue that officers should not work outside their capacity as a full-time public servant, but others require the additional income to pay the bills. In Houston, Texas it is common for full...

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Whether it be for personal, business, or tax purposes; finding the right accountant for you is quite important. The consequences that come with having a poor accountant are too significant for someone to simply go with whatever person a friend/family member is using,...

Dates to Remember

Needs Analysis

Free One Hour Consultation for any new business owner looking for an advisor to help them with their taxes or financials.

Subscribe Now

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11555 Champion Forest Dr.
Houston, TX 77066

info@molentax.com

Phone: (281) 440-6279

Fax: (281) 716-6000

 

Tax Season Hours

Mon - Fri - 8:00am-8:00pm

Saturday - 9am-1:00pm

Sunday - Closed

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