Tag: Financial Metrics
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Pulling Levers
Turning 1 into 2 “Give me a place to stand, and a lever long enough, and I will move the world” — Archimedes Leverage can be beautiful (just ask your banker), but what is it? Getting “leverage” means creating a multiplier effect in your business. It’s exponential, not linear. It literally turns 1+1 into 3…
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Try Using This Underrated Financial Metric
Nice Assets “The goal is not to grow bigger; the goal is to grow better.” — Peter Drucker What’s your favorite underrated financial metric? (seriously, reply and let me know) Mine is the asset turnover ratio (total sales divided by total assets), and I finally came across a great example of it in the wild: fast-casual restaurant chain,…
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Working Capital 101: The Small Business Owner’s Guide
You’re probably sick of hearing about working capital. Every business has working capital and next to cash, working capital is the lifeblood of every business. (If you think you don’t have working capital in your business, please send me a note, I want to hear about it!). First, what is working capital? Here’s a Net Working Capital…