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…
You can break down the small business lifecycle into 3 simple phase. Each phase is unique in how the small business is created and executed. It is a linear lifecycle, meaning one phase can’t happen without first going through the one before it, however, it is possible to bounce back to an earlier phase. Here we will explore these 3 stages.