Learn more about moneyandinvestments with this collection
The importance of innovation
The power of perseverance
How to think big and take risks
353
2.89K reads
334
1.89K reads
337
1.72K reads
315
1.37K reads
318
1.23K reads
Pretax Profit = Total Sales – (COGS + Operating Expense + Interest Expense)
319
967 reads
Gross Profit = Revenue – COGS
Do NOT include direct labor costs in cost of goods sold.
Cost of goods sold typically includes pass-through costs like finished goods, materials, and subcontractors.
By focusing on gross profit instead of revenue, most businesses from any industry can be compared side to side.
Contribution Margin = Gross Profit – Direct Labor
312
858 reads
311
939 reads
The “black hole” exists between the $1 million and $5 million in revenue.
This is a time in your business growth when you’re forced to add staffing and infrastructure before you can really afford to.
One of the keys to success is continually upgrading your staff.
The need to add management infrastructure seems to naturally occur when you have about twenty employees typically, when you’re between $2 million and $3.5 million in revenue.
312
763 reads
323
754 reads
313
580 reads
309
436 reads
304
470 reads
306
371 reads
305
449 reads
305
376 reads
305
393 reads
303
335 reads
301
368 reads
Opportunity is missed by most people because it is dressed in overalls and looks like work.
350
1.36K reads
306
547 reads
312
504 reads
311
364 reads
306
422 reads
307
374 reads
305
434 reads
304
299 reads
Least understood and least measured form of capital (yet it’s the most common!)
If you can’t afford to pay yourself a market-based wage for your efforts, then you’re going to have to defer payment and work for it.
The trap that most people fall into is believing that because they have a low wage, they can live off the profits of the business. It’s better to live off your savings and let your sweat equity build capital in your business. Then pay yourself a market-based wage when your business reaches 2 or 3 percent pretax profit.
305
301 reads
Keep your reporting simple while still being able to recognize a flashing red light that indicates a problem.
The more frequently you look at a report, the less data it should contain.
304
396 reads
306
279 reads
There are five basic elements that combine to drive the profits that are used to establish the value of your business: customers, employees, processes and know-how, core capital, and intellectual property.
Profitability, salary cap management, and the four forces of cash flow are all contained these five elements of value.
#1. CUSTOMERS
#2. EMPLOYEES
#3. PROCESS AND KNOW-HOW
#4. CORE CAPITAL
#5. INTELLECTUAL PROPERTY
307
374 reads
CURATED BY
This book teaches the fundamentals of owner compensation, profit targets, labour productivity, cash flow, and data reporting. Clear explanations and helpful illustrations throughout make it a must-read guide for small business owners looking to achieve higher profits.
“
Related Collection
MORE LIKE THIS
Ready for the next level?
Read Like a Pro
Explore the World’s
Best Ideas
Save ideas for later reading, for personalized stashes, or for remembering it later.
Start
31 IDEAS
Start
44 IDEAS
# Personal Growth
Take Your Ideas
Anywhere
Just press play and we take care of the words.
No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.
Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.
Start
47 IDEAS
Start
75 IDEAS
My Stashes
Join
2 Million Stashers
4.8
5,740 Reviews
App Store
4.7
72,690 Reviews
Google Play
samz905
Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.
“
Shankul Varada
Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.
“
Ashley Anthony
This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!
“
Sean Green
Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.
“
Ghazala Begum
Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.
“
Giovanna Scalzone
Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.
“
Laetitia Berton
I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!
“
Jamyson Haug
Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.
“
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving & library
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Personalized recommendations
—
—
FAQ
Claim Your Limited Offer
Get Deepstash Pro
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates