Unit Costs Explained for Service Businesses
Product businesses can point to a box and say what it cost. Service businesses rarely can. Your "product" is an hour of your time, a haircut, a repair, a …
Format
Explainer
Gross Profit vs Operating Profit Explained
Your profit and loss statement shows more than one kind of profit, and each one answers a different question. Gross profit tells you whether what you sell earns …
Product-Led Growth Explained for Founders
Product-led growth is a simple idea with big consequences: let people try your product themselves, and let the product do much of the selling. It can lower the …
Strategic Investors vs Financial Investors
Not all investor money behaves the same way. A financial investor wants a return on capital, while a strategic investor, usually a larger company in your …
Asset-Based Lending Explained for Small Businesses
If your business has money tied up in unpaid invoices, stock on the shelves or equipment on the floor, those assets can help you borrow. Asset-based lending …
Days Sales Outstanding Explained
Days sales outstanding, or DSO, tells you how long it takes, on average, for your customers to pay you after a sale. It is one number, but it says a lot about …
Tax Deductible vs Non-Deductible Expenses: The Basics
Every receipt you collect falls into one of two piles: costs that can reduce your taxable profit and costs that cannot. Knowing the difference between tax …