| Business - FinancePart 2
Gross profit margin
Your gross profit margin is your gross profit as a percentage of turnover. For example, if your turnover is $2 million and your cost of sales is $600,000, you’ve made a gross profit of $1.4 million. It’s easy to turn this into a percentage: 1,400,000 ÷ 2,000,000 x 100 = a gross margin of 70%.
... | Read More | It’s no secret small business owners are keen on doing more to promote their business using social media, but they often don’t know where to start and most don’t have the marketing dollars to hire an external agency. Some may have seen their efforts yield no significant results which possibly could’ve discouraged their ef... | Read More | The scenario: A company’s cash flow is pinched, but the stack of bills to lenders and creditors is piling up fast.
The tactic: Steal a page from the Chapter 11 handbook: Follow the “absolute priority rule” and pay off debts in order of importance.
In a recession, sluggish demand and slower-paying customers can put a serious s... | Read More | The scenario: Insignificant assets are hogging resources — without a clear payoff in sight.
The tactic: Keep the parts of the business that will help the company grow; get rid of those that likely won’t.
Assets acquired in a boom market can become liabilities in a slowdown for a company that grew too fast or accumulated extra bagga... | Read More |
The scenario: Customers are slow to pay, and unpredictable cash flow is disrupting operations.
The tactic: Sell unpaid accounts receivable to a factoring company that will trade them for cash.
As the economy slows, so does the typical payment schedule from a company’s roster of clients. And for many companies — typically small ...
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