As a business owner, one of your main goals is to drive profitability. Without profitability, you won’t have the cash flow to grow your business, and what’s the point of being an entrepreneur if you are going to run out of money and go out of business? One of the most effective ways to drive
Starting a small business is no easy task. It takes hard work, determination, and most importantly, a sound business plan. Too often, small businesses fail because they are not profitable enough to stay afloat. To ensure the longevity of your small business, it is important to aim for a 10% profit margin. This number may
The terms metrics, KPIs, and OKRs are often used by various resources for businesses out there. Some will say to focus on certain metrics while others will say to focus on a certain KPI or to develop OKRs for growth. But what do they all mean for your business? How do you use them? Which
What does it mean to be profitable as a craft brewery or food crafter? Your tax return will probably tell you that profit is your cash receipts from sales less cash expenses, whether those cash flows cover months in the past or future (ie real estate taxes or insurance). Some people will tell you that this is an OK way to view your business.
But it isn’t. Your tax return is meant to tell you your tax liability. And simply accounting for profit from cash inflows and cash outflows is only meant to tell you cash flow from operations.
But there’s another way…