Today we’ll cover a topic near-and-dear to every business owner – unit economics – we love thinking about how much we make on every sale! What are Unit Economics? Don’t be fooled by the fancy term… unit economics are simply the profits you earn on a per-unit, or per-service, basis (think: your margin on the sale of…
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…
There are only 3 ways to convey information: If we rank them from easiest-to-hardest-to-understand, then it probably goes: 1) pictures, 2) words, 3) numbers. So why are we exclusively using numbers to understand our financial position? Enter: pictures. Why this matters? Aside from our inability to decode numbers in general, a single number (or a…
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…