Business owners have to face a reality that most of their assets—tangible or intangible—lose their value over time. These losses are measurable and have an impact on a business’s accounting practices. We will be tackling amortisation in this context. Amortisation is the process of quantifying the intangible assets’ gradual losses. It means spreading out the …
In the book Profit First, Mike Michalowicz innovates the way cash flow is looked at by turning the traditional formula of sales – expenses = profit into sales – profit = expenses. This simple change reframes the thinking of individuals when it comes to spending habits. Michalowicz also introduces the Profit First Instant Assessment, which …
7 Steps to Making a Profit First Instant Assessment with VAT Read More »
One of the best things about the human mind is its capacities to steer big machinery, both literally and figuratively. We’ve seen spacecraft touch the face of the moon, and revolutions change the course of the world – all because of the brilliant human mind. In this article, we will be tackling which has focused …
How to Create a Positive Mindset to Achieve Your Goals – 6 Steps Read More »
All business owners strive to build a world-class team because a great team is essential to grow an organisation or a business. Therefore, each of your team members must have a strong grasp of your company’s purpose and common goals. It is also important that they share varied and excellent skills to complement each other …
A lot of business owners, especially new ones, struggle with cash flow management and generating profits from their business. Struggling entrepreneurs can turn to the Profit First Method, which best-selling author Mike Machalowicz introduced. This method is perfect for those who want to “transform their business from a cash-eating monster to a money-making machine.” Most entrepreneurs start a business …
Profit First – Are You Embarrassed by Your Profit? Here’s What to Do Read More »
Profit margins are financial ratios used to determine your business’s profitability. Different profit margin ratios correspond to the reflected profit in a company’s income statement: gross, operating, and net. They are calculated simply by dividing the profit value by the total sales and multiplying it by 100, as profit margins are expressed in percent. They …
Exercising good flow cash management helps you make sound investments that will maintain your competitive edge in the market. It also ensures you won’t need to resort to taking loans just to keep your small business functioning. Over the years, studies proved that a profitable business would still fail without proper cash flow control. It …
As your company grows, you will most likely want to hire a professional to do the real work: managing your finances. A business owner can only do so much. It is an edge and an excellent entrepreneurial practice to know your business’s ins and outs, from the manufacturing process to the financial statements. However, employing …
table of contents Ways to Reduce Spending Enumerated1. Make an assessment2. Reduce your fixed and variable expenses3. Delay capital expenditures4. Adapt to current market trends5. Review personnel expenditure6. Request for extensions and concessions7. Get creativeFinal Thoughts on Ways To Reduce Spending Even before declaring a nationwide lockdown, the COVID-19 has dramatically affected the business industry …
Nothing is more rewarding than seeing your business achieve the peak of its success. After all the sleepless nights and uncompensated overtimes, all the manual labour, time, and effort you have put in are now coming to fruition. As many entrepreneurs know, owning a business is not nearly as glamorous as what other people think. …
Salary of Business Owners: How Much to Pay Yourself? Read More »
