The concept of liquidity, types and how to calculate
The meaning of the word liquidity is not as confusing a term as it might seem. In essence, liquidity is the ability of something (an asset) to quickly turn back…

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8 reasons why a business is losing money out of the blue
When we start working with financial accounting in companies, the first thing we do is collect basic reports. Thus, we digitize the company. And thanks to this digitization, it is…

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How to develop a business plan
For the success of the enterprise and the company as a whole, you need the right development strategy, which needs to be thought out to the smallest detail. The best…

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Margin Analysis
Let's imagine that confectioner Vasya Yagodkin sells one hundred cakes with raspberries and one hundred with currants every month. Crimson ones bring him 50,000 rubles, and currant ones - only…

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higher position

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

Tough measures or how to make adjustments to the work of the company

In response to this statement, one can object that the company is the people working in it, which means that changes should affect not only the top management, but also the rest of the links in this chain, tightly attached to the anchor going to the bottom.

The first step towards change begins with the very awareness of the problem and the need to break the habitual way of life or, as it is now fashionable to say, “get out of the comfort zone.” Often such a need arises against the background of an existing and theoretically working business plan, which, alas, does not bring the desired result. Continue reading

How to Find Marginal Revenue
According to basic economic principles, if a company lowers the price of its products, then that company can sell more products. However, this will generate less profit for each additional…

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State support for businessmen
When starting a business, the issue of financing is always acute. Common sources of funds are credit or loans. But there are additional opportunities to make your life easier: these…

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7 financial risks in business that could be worth millions
There are always risks in business, and there are many of them. Some cannot be influenced, for example, if the summer in the region turned out to be dry, agribusiness…

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