Month: September 2024
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A Small Business Capital Allocation Guide
In any business (that’s any industry, any size, any product), there are generally only 3 ways to use profits: Most finance pros refer to this mix of profit usage as capital allocation. What does capital allocation actually mean? Capital is just a fancy word for money, and it can come from a few sources, but mostly cash generation…
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How Much Cash Should Your Business Keep?
How do you know whether you have enough cash in your bank account? This is a common question in both business and personal finance. My guess is you’re taking one of the following approaches: Why should your cash balance matter to you? What about some strategies for determining cash reserves? Here are 2 simple approaches…
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The Finance of Promos & Discounts
With Labor Day promotions behind us, it feels like a good time to talk about the financial impact from discounts, promotions, and marketing campaigns on your business. It goes something like this: These aren’t necessarily bad strategies. Remember, promotion is one of the “4 P’s of Marketing.” But we typically fail to account for them properly when…