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Three Methods To Help You Keep track of Business Finances

Strategy Driven

Look At Fixed Costs And Changing Ones. Every business has fixed costs and variable costs. What will cost you the same amount every time? Sit down and think about these differences right now, and write down any costs you can think of. Most of the time, these costs can overlap in some places.

Finance 98
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Tilt: A book review by Bob Morris

First Friday Book Synopsis

Tilt: Shifting Your Strategy from Products to Customers Niraj Dawar Harvard Business Review Press (2013) How and why downstream, customer-led activities and preferences will dominate the competitive landscape in the future Niraj Dawar offers an exceptionally thoughtful and thought-provoking examination and explanation of what could be viewed – what (..)

Review 75
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Love Them and Lead Them

The Practical Leader

Airline revenues collapsed while fixed costs stayed high. The areas of our lives where we show the strongest leadership — including our communities, families, organizations, products, services, hobbies, and customers — are where we’re most in love. That’s particularly true in the airline industry.

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How Do I Start A Small Business?

Strategy Driven

What are the products and services you want to provide to your customers? Once these are completed, evaluate the following gradually; The Market Demand for your products and services. The price fixation of your products. Fixed Costs / (Average Price – Variable Costs) = Break-Even Point –.

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How To Reduce Business Expenses

HR Digest

Not just about the cost reduction, it also gives the business a wider range of profit-making opportunity. Reduce production cost. To reduce business expenses, managers reduce their cost of production. Businesses should also learn to recycle waste materials to save cost and not to just dispose of them arbitrarily.

How To 63
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Contribution Margin: What It Is, How to Calculate It, and Why You Need It

Harvard Business Review

Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds costs. But if you want to understand how a specific product contributes to the company’s profit, you need to look at contribution margin. You might think of this as the portion of sales that helps to offset fixed costs.

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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral.