Like elite athletes, successful entrepreneurs are always up for challenges. It doesn't matter what economic situations they face, elite entrepreneurs are constantly finding ways to improve. Great managers achieve steady success regardless of occasional setbacks.

It's a relentless commitment to excellence that enables them to meet and exceed their goals. That and realizing that numbers are critical management tools.

While attention to customer service and marketing are important in tough economic conditions, it's financial actions that help entrepreneurs remain competitive.

Here are four actions to give you that edge.

Customer payments: Maintain a system that reveals aging of your accounts receivable. Ask your accountant to measure the average balance relative to sales. When you see this figure creeping up, your customers are waiting longer to pay.

Allowing customers to pay several days after a purchase is a privilege you offer, not a buyer's right. You have the right to expect prompt payment, and the regular customers with whom you've established valued relationships will understand.

Of course you can afford to be lenient with customers who keep their word and are honest about temporary cash shortages. But you may want to change transaction terms - even requiring payment at the time of sale - for those customers who consistently let you down when it comes to payment.

Vendor priority: Just as you expect prompt payment from customers, your vendors expect the same. But not all vendors are equal. Remitting payroll taxes, for example, is critical and should be a top priority. Paying your rent should also be a priority, more so even than paying your banker, who is often willing to resolve issues and avoid collateral repossessions.

Keep an accounting of amounts owed to each vendor. If the numbers creep upward relative to sales, it is essential to prioritize vendors. Be proactive. Contact vendors and ask for extra time to remit payments. Always pay the highest-priority bills first and describe your circumstances honestly to every vendor.

Inventory balance: Holding too much inventory relative to sales is a recipe for disaster, and a successful business sells its inventory promptly. The basic procedure of measuring your inventory turnover must be conducted often. Your accountant can show you the equation, which uses numbers readily available from your bookkeeping system.

Don't be afraid of discounting stale inventory. Too many businesses don't hold enough cash during a downturn in sales and unloading old items from inventory helps you to weather a slump. In fact, the cash you raise through liquidating your stale inventory allows you to accumulate new inventory at low prices.

Experiment: Top-quality business owners always have an eye to the future. They improve upon what they do well and discard mistakes. They experiment and measure the results.

For example, you can enhance sales with free installations or by offering extended warranties. Create customer loyalty clubs or invest in training your sales team. Most important, you could schedule regular meetings with your accountants to review company bookkeeping and evaluate overall your financial condition.

On January 9^th Dozens of New Jersey vineyard owners gathered in Trenton awaiting the Assembly’s vote on a bill that would allow small wineries both in-state and out-of-state to operate shipping outlets in New Jersey.

“I think the vote by the Assembly was at 11:07pm and then it had to go to the Senate because there were some amendments made,” said Bill Heritage, who owns the Heritage Vineyards in Harrison Township with his wife, Penni.  “It was 11:30 before it all came to an end, and it passed in both houses.  There were about 30 to 40 wineries in attendance, and we all hung out in the gallery until it was finished.  It’s an important bill.”  Ultimately, it was passed 51 to 18 with four abstentions in the Assembly and 24 to 9 in the Senate.

“It shows the support they have for the state,” said Heritage of the Legislature’s decision.  “This bill will increase the reputation of the state of New Jersey, let new wineries begin operations and let existing wineries grow.  They now realize what we can do through agritourism and what potential this has for New Jersey.

New Jersey Gov. Chris Christie signed into law a bill legalizing winery direct shipping in the Garden State on January 10^th. The law, which also permits wineries to open as many as 18 offsite retail tasting rooms in the state, takes effect this May.

For now, New Jersey wineries can get back to the business of winemaking knowing that their satellite tasting rooms are safe from legal challenges, but the new legislation isn't bulletproof. Under the new law, residents can only receive wine shipments from wineries making less than 250,000 gallons of wine annually—that's what's known among wine law geeks as a "capacity cap limit," and it's known to the U.S. Court of Appeals as "unconstitutional.”  The reason? All New Jersey wineries fall well under the capacity cap limit, but that cap excludes more than 90 percent of the wine made in the United States, and that's what lawyer types call non-facial discrimination. Not to worry, though, Jersey wine lovers. Jersey Senate President Stephen Sweeney (D), who sponsored the bill, said "[if] the courts rule the cap is not valid, then we'll just move forward without the cap." So get into the spirit during this week in which we celebrate civil rights and say it with us, New Jersey: "Mr. Christie, take off this cap!"

The Pennsylvania Liquor Control Board says its one-year experiment with wine vending machines at grocery stores is over, at least for now, because of a dispute with the contractor.

The Liquor Control Board said Monday, September 19, 2011 was the last day to resolve $1 million dispute with contractor Simple Brands LLC.

Installation of the machines in grocery stores around the state began last summer, and the liquor board says 21 had continued to operate in Giant Eagle, Fresh Grocer and several other store operators.
The liquor board maintains that Simple Brands owes the state nearly $1 million, but Simple Brands has disputed that assessment.  Simple Brands says the liquor board had incurred unnecessary expenses and "improperly" billed them to Simple Brands.

Our trip to Richmond this week, was a great experience.  I want to thank everyone who came buy to talk about our services and all of those who stopped by to just say Hello!  It was great to see a lot of our old friends as well as of our new friends that we met.  The new venue at the Great Richmond Convention Center was a huge success.  We are already looking forward to next year.

Wineries Unlimited 2011 - Greater Richmond Convention Center in Richmond, Virginia

Plan now to participate in the East Coast wine event of the year!  Join us at the Trade Show, March 30th and 31st, as Wineries Unlimitedcelebrates its 35th Anniversary at their new location, the Greater Richmond Convention Center in Richmond, Virginia.  Wineries Unlimitedhas proven to be the largest and most powerful wine industry event in the eastern U.S.  It's the meeting place for vineyard, wine making and tasting room decision makers from all over the globe.

This is our 5th year in particpating in the Trade Show.  Every year this even continues to grow in size, scope and popularity.  With the new venue, I expect to see a lot of new faces as well as our current friends from years past.  Please stop by Booth #446 to say "Hello" and to discuss how our services can help benefit you.  See you in Richmond!

There are tax issues that face wineries & vineyards that many may not be aware of.  Here is a close look at some of the issues that you should be thinking about now.

TAX ISSUES FACING WINERIES AND VINEYARDS

1. Method of Accounting – Cash vs. Accrual
2. Depreciation Rules
3. The Domestic Production Activities Deduction
4. Farm Accounting Issues

Go to our January Newletter to view the complete article.

WHO GETS TO RUN THE BUSINESS WHEN YOU’RE GONE, OR GONE FISHING?

Here are two questions most small or family vineyard owners juggle every day in the back of their minds:

1. Who should run the vineyard, and insure I continue to have an income, when I decide to retire?
2. Who should get the vineyard, and insure my family’s income is protected, when I am gone?

Answering these questions is a process that’s easy to put off, but if you put it off too long, it’s possible you’ll be putting at risk everything you have sweated to build.  This is not the #1 daily issue you face right now as a vineyard owner, but it is the most important issue you will be faced with in the future.

As a vineyard owner you know you have a good deal of your wealth tied up in this illiquid asset.  You are brutally aware of your dependence on the business to succeed.  And, to a great degree, the business is your “baby”; you have a lot of yourself invested in making it work.  So, planning for a successor can be a wrenching process.

There is family to consider.  Or partners.  Or even your own reluctance to let go.  But, as a business owner, you realize that grooming a competent management succession is the only way to go.  I believe we can help you get started.

We are RESNICK AMSTERDAM LESHNER, PCCertified Public Accountants with a deep immersion in advising and protecting vineyard and winery operations. I was one of the featured panel participants in “Successful Succession Planning”at Wineries Unlimited 2009 show.  It’s true, most accounting firms can take you through the thickets of costs, income and taxes.  But, that’s for the general run of businesses.  Wineries have their own set of unique challenges and value determinations.  And we are familiar with all of them, from terroir to tasting rooms.

So let me take you through the first steps in succession planning.  Your answers will go a long way in helping you develop a disciplined path to a competent succession plan that meets all of your concerns and wishes.

1. Do you have a successor or successors in mind?
2. How much income do you need from the business in retirement?
3. Who in your business has the leadership skills required?
4. What is your time table for implementing a successful transfer of responsibility?

You have started to become philosophically involved in the process.  Now comes the nitty gritty.  How do you fund the process?  How do you structure the succession so you can maintain control, if that’s your desire?  How do you include a “Non-binding Family Business Understanding” as part of the structure?  How do you transfer your intangible knowledge to your successor?  And how much is that worth?

These are among the areas in which our experience will come into play.  You deal with a living product every day.  It deserves to continue as a living entity, in the right hands.  You are the only one who can control that.  We invite you to begin exploring the succession path that is right for you by calling us now.

There is no cost for your inquiry and this initial discussion.  We want you to feel comfortable with us and the way we approach helping you make decisions that will be the best for you, your family, and the business.