loss of profit
Seven laws of money or how to be friends with finances
Do you want to become financially free and prosperous? Have you thought about your relationship with finances? We all want to have as much money as we need and even more, but in the end we can observe that someone is friends with money, and someone not so much.
Money requires respect, so proper handling and following the money laws discussed in this article will help you improve your financial situation and strengthen your relationship with money. Continue reading
Operating lever
Typically, business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company has earned, and profit shows how much is left after deducting expenses.
Most likely, if the revenue is higher, then the profit will be higher. The opposite also works: if revenue falls, then the same will happen with profit. And everything would be very simple if there was a direct relationship between the indicators. But no: revenue can sink quite a bit, and this will lead to big losses. Continue reading
Types of cash flows
Three types of cash flows
It is customary for entrepreneurs to divide the cash flow into receipts and disposals and compare: if the amount of expenses is greater than the amount of receipts, then the month is unsuccessful, and if vice versa, everything is fine. This is the fastest way to assess the state of affairs in a business. However, it is not the most accurate, since a lot depends on what the money was enough for.
For example, in one month they overpaid for the maintenance of the office – they updated the form of employees, but at the end of the month there was not enough money for basic expenses – salaries and rent. Continue reading
