Tag: profitability
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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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Unit Economics – Find Your Crown Jewel
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…
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Working Capital 401: Cash Conversion Cycle (CCC)
We’ve covered working capital a few times in the past… But today we’re covering probably the all-time most useful ratio when it comes to managing working capital… the Cash Conversion Cycle (CCC). What is it? Your CCC measures how long (measured in days) it takes a dollar of cash to move through your business, from start…