What is it, How to Calculate it, How to Improve Profit Margin
By Anna Baluch –
When you sell a product or service, it’s important to understand your profit margin or how much money you make by selling your product. Essentially, a profit margin shows your return on investment (ROI) for all of your expenses. A low margin indicates you’re not getting the ideal ROI for your expenses while a high one proves you’re doing well.
Ideally, you’d have a high profit margin that steers your organization toward long term growth and success. By taking the time to figure out your profit margin, you can set attainable goals and make informed decisions for your unique business. (more…)
By Michelle Black –
Buying commercial real estate has the potential to be an excellent investment, often more so than residential properties. Yet even if you’re an experienced real estate investor, it’s crucial to understand that buying a commercial property isn’t the same as buying a house.
Before you purchase a commercial property, it helps to know the pros and cons of this type of investment. It’s also important to understand that with the chance for more reward often comes a higher purchase price and more risk.
How to Buy a Commercial Property: An In-Depth Review
1. Understand your motivations for investing in commercial real estate.
Why do you want to invest in commercial real estate? It’s an important question to ask yourself before you start hunting for properties. (more…)
By Michael Patten –
We’ve all watched entrepreneurs go onto Shark Tank and pitch their product to the Sharks. Some participants are so impressive in the way they deliver a clever pitch that instantly grabs everyone’s attention, while other participants fail miserably and make you cringe inside.
While my son and I have watched many episodes together, one business in particular stuck out to me. Two cousins from Maine pitched the idea of a food truck selling lobster. After seeing an update on the business this year, I decided to learn a bit more and picked up their book, Cousins Maine Lobster: How One Food Truck Became a Multi-million-Dollar Business. The book provided a detailed account of how they started their business, how they landed on Shark Tank, and how their deal with Barbara turned their food truck into a multi-million dollar business.
The book was a fun read and provided some great insights into starting a business and all of the work that is involved. However, one of my favorite chapters was titled “Oh, Right, Money Matters,” because it highlights the value and critical importance of understanding the key metrics of any business. (more…)
By Cheryl Abrahamson –
In an economy where the stakes are increasingly high and cash progressively scarce, business owners must proactively manage the balance sheet and income statement or risk falling victim to the five silent killers of cash flow.
Did you know that a majority of businesses that file bankruptcy reported a net profit, yet had negative cash flow? Often the warning signs that a company is in trouble go unnoticed until it is too late. A business can improve its liquidity and create long-term viability by looking closely at the following potential trouble spots.
Mis-financing is defined as borrowing short-term debt to pay for long-term assets. These assets could include purchasing equipment, leasehold improvements and other fixed items, paid for with a short-term line of credit. This process drains the cash out of a business and condenses the time-frame the asset has to pay for itself. (more…)
By Connor Wilson
Nowadays, when people think of credit scores, their minds often go to what they see on America’s best friend: television. Even without seeing a single commercial for a free credit monitoring service, most if not all people know that credit scores are important, and something to be watched and taken care of. They are, after all, your lifeline to some of life’s biggest milestones, like buying a home, paying for college or getting a bigger boat than your loudmouth neighbor.
From my time working in personal lending services, it became very clear that Credit Karma in particular has done quite the job getting into the minds of Americans. Almost daily I’d hear people mention what their latest credit score was according to Credit Karma, and either the confidence or doubt that came with it.
While everyone has a personal credit score and should definitely check it, business owners also have a business credit score. With that in mind, is there a Credit Karma for businesses? (more…)