Successful entrepreneurs know that it is not revenue or sales that count, but the gross margin you can produce from your sales. Without a healthy gross margin, your sales will not produce enough gross profit to cover your operating expenses and return a profit to the owners.
When it comes to defining your revenue streams, especially when you are developing a business model canvas, there are many factors that you need to consider that affect your potential income source. Will you use a fixed or dynamic pricing mechanism, and is your revenue based on transactional and reoccurring sources of revenue?
Social media has matured as a marketing channel over the years and is often paired with other channels like websites, blogs, videos and more to accomplish a specific business goal. I believe there are essentially six social media goals worth considering.
It is usually not easy to decide to do either project A or project B because we cannot accurately measure the return on investment (ROI) on dollars spent or the return on effort (ROE) on time spent. You don’t have to do everything, but you do have to do something. Action almost always trumps inaction and there are things that you can do in 30 minutes or less to add value and create positive momentum.
It is important for every business to benchmark their business against others in their industry and in their local area from time to time to see how they stack up. A free tool offered by the SBA called “Size Up” can help.
Every business makes investments to create revenue for itself. All too often business owners consider cash as its only source of revenue worthy of investments. In addition to cash revenue comes in the form of Attention and trust and Referrals
As a small business, you have to consider the concept of microeconomics when pricing your product or service to maximize revenue. By definition, microeconomics studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources (i.e., money). Contrast microeconomics with macroeconomics. Macroeconomics considers the sum of all economic activity such […]
I’m writing this post while sitting in a hunting blind with lots of time to think about life and business. Last night after sunset, I located a farmer by the name of Ryan Britten. I have known him since he was a small child. I hopped aboard his Caterpillar tractor and we took several laps […]
While the underlining ability to write content that people want to buy is the same for both the magazine and the book publisher, the design considerations mirror many of the same issues entrepreneurs go through when they try to define their business and economic models.
Rather than attract and retain key talent in-house, have you ever thought about building or using a platform like innocentive? Innocentive connects seekers of solutions with solvers. By using this type of platform, you can pay talented individuals based on the number of transactions you need instead of retaining them for a reoccurring salary. They […]