Profit drivers are determinants that have a significant impact on a business’s bottom line. They are often categorised as financial and non-financial drivers. Financial profit drivers are directly connected with dollar figures and are most commonly considered in relation to profit. Examples of financial profit drivers include: price fixed and variable costs sales volume inventory…
Cash flow is essentially the lifeblood of your business, and it is about much more than being successful. In addition to raising revenue, a healthy cash flow is determined by organisation and planning. Here are some tips for managing your cashflow: Set targetsSet yourself realistic targets that will meet your business’s needs for the next…
Applying for a bank loan can be a difficult process. But despite the borrowing challenges facing small business owners, it is possible to have your loan approved. Bankers are not in the risk business, protecting their capital is paramount. Their careful examination of the integrity of a business has made it a priority for businesses…
An integral part of running a business is establishing sound financial procedures and systems so you can monitor the overall financial health of the enterprise, as well as ensure that you continue to meet your tax obligations. Set up a business bank accountKeeping your business finances separate from your personal finances enables business owners to…
Businesses looking to improve their profitability may need to consider cutting under-performing products and services. There are a few simple ways to decide which products should stay and which should go. 80/20 rule An often used marketing and business rule states that businesses should focus their attentions on the 20 per cent of products that…