Category: AFBO
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How Independent Contractors Budget
During a recent workshop, I was asked if independent contractors can really operate using a budget…if so, how do they budget? Yes, independent contractors can make a monthly budget even though they live the 1099 life. Here’s how. The concept of a monthly budget is a no-brainer for people who rake in a regular paycheck…
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Sales Forecast – Backbone of the Business Plan
The sales forecast is the backbone of your business plan. People measure a business and its growth by sales, and your sales forecast sets the standard for expenses, profits and growth. Usually, sales forecasts are based on past sales data, industry-wide comparisons, and current economic trends. It is easier to come up with a sales…
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Breakeven Analysis – The Key
How many units/service jobs do you need to do on a daily basis to breakeven? To begin to predict where you begin making a profit in your business, you need to know the Breakeven Point…that moment of sales and expenses when you can breath your first sigh of relief. Most businesses spend their first 3-5…
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Financial Terms Glossary
Listed below are some everyday financial projection terms that I was requested to define in common terms during a recent business financial event. For more information on business financial planning be sure to join Small Business Thoughts for free and search the Library at http://www.smallbusinessthoughts.com. accounts payable Money owed to others for goods and services…
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Varying Degrees of Balance
Here are some observations about how profit and cash flow can exist in varying degrees of balance when you make financial projections for your business: By definition, profit (also called net income) is the surplus after all expenses are deducted from revenue, and it is the basis on which tax is calculated. On the other…
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Understanding Business Accounting
Six Groups That Do Business with a Business Six main groups are intimately connected to the life of a business. Knowing who they are, what they expect and how you’re interacting with each of them is essential. Customers, who buy the products and services that the business sells. Employees, who provide services to the business;…
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Startup Business Concept Refinement
Refine your business concept by researching available information/knowledge to see what works … try to duplicate those things that don’t affect your unique concept. Validate your product/service value proposition by customer testing using the least costly modeling method (minimal viable product) to find product-market fit & gather feedback from potential customers. SIMPLIFY your “vetting” research…
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Financial Savvy Test
Quiz & Answers: True or False: The more a company sells, the more it earns…False. Many companies aren’t even aware that on some or even most of their products or services they are selling at a loss. I can even remember one CPA firm I coached that was shocked when I showed them that they…