The Vital Role of Customer Feedback All successful businesses have one thing in common – they value their customers’ opinions. Opinions of customers, or customer feedback, is the cornerstone of a business’ growth and long-lasting success. Running a business does not solely rely on products or services offered but involves the art of listening to […]
What is Market Research and How Does It Help Your Business?
Understanding Market Research In simple terms, market research is the process of gathering, analyzing and interpreting information about a market, a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service. It involves research into the characteristics, spending habits, location and […]
What is Cash Flow Management?
Understanding Cash Flow Management Cash flow management, at its most basic level, refers to the manner businesses monitor, analyze, and optimize their incoming and out-going finances. It’s a critical element for every business – small or large, new or established. Without effective oversight and control on their cash flow, businesses could find themselves unable to […]
What is a Business Plan and Why Do You Need One?
Understanding Business Plans At a fundamental level, a business plan is a formal statement setting out the goals of a business, the strategy for achieving them, and the standards for measuring success. Think of it as a game plan or a roadmap. It describes the direction you intend your business to take, the steps you […]
What is Business Growth Strategy?
Understanding Business Growth Strategy A business growth strategy refers to a detailed and structured plan designed by companies to achieve growth, expansion, and profitability over a specific time period. This strategic plan often examines the organization’s entire structure and operating methods to identify opportunities for growth and development. In essence, a business growth strategy is […]
What is Sensitivity Analysis
Introduction to Sensitivity Analysis Sensitivity analysis is a mathematical method that helps us understand how different values of an independent variable impact a particular dependent variable under a given set of assumptions. This technique is used within specific boundaries that depend on one or more input variables, such as the effect that changes in interest […]
What is Breakeven Analysis
Introduction to Breakeven Analysis Breakeven analysis is a powerful financial tool that businesses utilize to determine the minimum output they need to produce or the minimum amount of units they have to sell in order to cover their costs. It aids in decision-making, planning, and controlling by providing valuable insights into the relationship between costs, […]
What is Contribution Margin Ratio
Understanding Contribution Margin Ratio As a business owner, you’ll likely encounter many financial and operation-based jargon in your day-to-day activities. One of these is the contribution margin ratio – a key performance indicator used in financial analysis and business accounting that measures a company’s profitability for individual items that it makes and sells. Specifically, it […]
What is Operating Income
Understanding Operating Income Operating Income, often referred to as operating profit or operating earnings, is an important financial metric that offers an insight into a company’s profitability. Simply put, operating income is the profit a company makes from its normal, core business operations before interest and taxes are deducted. It primarily denotes the amount of […]
What is Amortization
Understanding Amortization Amortization is a fundamental concept in finance that involves the gradual reduction of a debt over a specific period. The term “amortization” is derived from the Latin term ‘mort,’ which means death. Therefore, in the financial context, amortization refers to the ‘death’ or elimination of a debt over time. Amortization therefore commonly applies […]