How to Know When to Close a Business or Operate at a Loss
Knowing when to close a business isn’t just about avoiding losses. There are valid financial reasons to continue operating despite not making a profit, but …
Business Economics
5 Key Reasons Product Quality Does Not Guarantee Business Success
A piece that puts off would-be entrepreneurs from starting a business is there’s never ever a promise of running it profitably. It’s not that the perfect …
25 Smart Ways to Lower Your Break-Even Point and Profit Faster (Infographic)
Why is a lower break-even point better? Or, why might a business wish to lower its break-even point? A break-even point is where the business …
Does Lowering Price Increase Sales? 2 Ways Math Says Yes and No
The answer to this question depends. In fact, lowering prices can either increase sales, decrease sales, or have no impact. But with a range of …
When Selling Less Earns You More: Profit Maximization
Sell more to earn more, right? I mean, why sell 100 units when you can sell 200 units? Does selling more units and do increases …
The Unfortunate Truth About ROI and Payback-Period
It’s not unusual for business owners to evaluate projects based on two well-known tools: the payback period (PP) and the return on investment (ROI). Both …
A Basic Guide to the 3 Valuation Methods
This post tries to simplify the 3 valuation methods but still covers intermediate/advanced topics. If you find them confusing, I recommend starting with the Fundamentals …
3 Easy Steps to Know if a Business Idea is Worth Pursuing: Breakeven Point
The breakeven point is possibly one of the most underutilized tools in business assessment and evaluation. As entrepreneurs, we obviously have the common sense to …