Tag: Accounting
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Financial Questions For A Startup
One of the questions I get asked when mentoring startup entrepreneurs is “How much money do I need to start my business?” A Shopify survey of 300 small business owners and 150 aspirational entrepreneurs in the U.S. found that they spent, on average, $40,000 in the first year of business. While some businesses still require…
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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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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;…