Your break-even point is the number of units you have to sell to offset expenses and begin making a profit.
If it’s been more than a year since you’ve reviewed your business plan, it’s likely time for an update. After all, a lot can change in a year. A new competitor may have emerged, your solo venture might be ready for a new hire or you may want to take advantage of a growth opportunity.
What is the cost of unpaid accounts? Unpaid or delayed receivables may require a business to borrow money and incur interest expense. Running out of money completely can shut down the business. There’s also the stress associated with chasing payments as well as juggling your own payables.
Pricing is an essential decision for business success. Price too high and you risk losing sales to your competitors. Price too low and profitability may suffer. For an established business seeking growth, a regular pricing review can help to determine the right balance.
You don’t need to be a math wizard to understand which numbers can tell you how well or how poorly your business is doing.
Do you know which of your customers are the most profitable? Are they repeat customers who buy often, but spend less per purchase? Or are they customers who purchase less regularly, but buy high-margin items?
Bad debts are a part of business life. But a large unpaid invoice can cause your small business serious harm; in some cases, it can mean the difference between staying afloat and closing your doors.
Striving for growth doesn’t necessarily mean becoming a multi-national corporation. Your growth plan may simply be a strategy for staying profitable for as long as you want to run your business.
Growing a successful business is not only about winning new customers. It's also about improving what you offer to your current customers. Here are four key ways to grow your business.
Teaming up with another company to pursue common goals is a smart way to grow your company. After all, two heads are better than one.
Spending time and money on research and development is not reserved solely for big businesses. A business of any size can benefit from it and give you an edge to satisfy the constantly changing preferences of today’s demanding consumers and businesses.
While free or discounted online trials are a great way to attract new customers, they don’t always succeed in converting samplers into buyers.
Adding something new to your existing product or service offering can significantly increase your business revenue.
Interesting and relevant content will draw visitors to your website where you can convert them into prospects.
If you're starting up a new business, breaking your market into customer segments will give you a sense of the different groups of customers you can target.