Posts Tagged ‘Profits’
Focus on Profits is Not Enough for a Great Business
It’s always been tough to start a new business, even when the bottom line was just making a profit to stay alive. Entrepreneurs are now measured against the “triple bottom line” (TBL or 3BL) of people, planet, and profit.
Read More When Should a Small Business Focus on Growth over Profits?
Profits are today, and growth is tomorrow. You need today assured by cash flow, but don’t sacrifice more today than you have to when you pay for it with tomorrow. Find the right level.
Read More Good Accounting is so Important
Great accounting is so important for each and every business, but too many are lacking in this area. Most use standard income statements and balance sheets, but there is so much more information business owners need that is not available in these basic financial statements.
Read More Should Entrepreneurs Grow Revenue or User Count?
A higher focus on user growth may be necessary early, but is never sufficient. If you are in it for the long run, don’t forget the basic business principle that if you lose money on every customer, you can’t make it up in volume.
Read More Create a Ten Percent Profit Model
Most entrepreneurs, when starting to model their business operations using a spreadsheet, start with expected revenue by month. Then they calculate cost of sales, and then project their expenses, to find the bottom line profit or loss each projected month.
Read More Revenues and Profits Are Not the Same
You can’t assume an increase in revenues leads to increased profits. Sometimes an increase in revenues has no effect or a negative effect on profits.
Read More Franchise Business’s Profit and Loss
When you’re searching for the right franchise, you’ll have lots of documents to read, plenty of people to talk to, and advice from all sides. One piece of the puzzle that many future franchisees overlook is the profit and loss statement (P&L) from your potential franchisor.
Read More Crunching the Numbers: How to Know if Your Business is Cost-Effective
It is no secret that funds are extremely limited in the first few years of a business. However, even when your business starts to boom, be sure to constantly analyze where the money is going and whether or not your expenditures are worth the asking price.
Read More Are Declining Sales OK?
Most business owners think that you have to grow your sales from year to year. But is that really true? Volume is vanity. Profits are sanity.
Read More Of Price and Profits
How is it that businesses consistently fail to see the relationship between price and profits? What I suspect is that many businesses believe that it’s easier to compete on price than to differentiate.
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