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Business Plan Development: Know your Finances

Strategy Driven

This allows you to demonstrate gross margin: sales revenue less sales costs. Differentiate between fixed costs, such as rent and payroll, and variable costs, such as advertising and delivery. Some business planning software programs will help you make these projections. Create an expenses budget.

Finance 10
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5 Effective Strategies for General Contractors to Cut Costs

Strategy Driven

A lot of contractors subscribe to different software services yet don’t use most of them. In the former case, the owner of the project only has to pay a fixed cost that includes overhead and profit. This is not necessarily the most cost-effective approach. You can relocate the office to a location where the rent is lower.

Cost 58
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Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. This story of disruption should feel familiar.

Energy 8
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3D Printing Will Revive Conglomerates

Harvard Business Review

Hailed in the 1960s as bastions of sophisticated management, they used cheap financing to acquire, then rationalize, many family-owned firms. With GE’s recent announcement to split off its remaining finance operations , and Honeywell also considering divestment, the pressure on these groups remains in force.

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Does Your Startup Have a Spending Strategy?

Harvard Business Review

So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. To address those cost overruns, Colin subleased some space, cancelled a redundant and very expensive trading service, and let one person go. What can you afford to lose?