Business Optimization Based on Potential Assessment
Business - activity, the result of which is effectiveness and efficiency. Effectiveness - achieving goals in the external environment, obtaining market, financial, social results. It is expressed in revenue, income,…

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Integration of company goals with budgeting
As a budget planning tool, managers can anticipate possible problems in the development of a company or business and find ways to solve them. These trends should be predicted in…

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Founder of the automobile holding Almaz Group, about 6 myths of the automotive industry, its future and the life of retailers
Even after 25 years in the auto business, I try to look at the world with wide eyes. Change has become the essence of our lives, so we need to…

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general terms

Why and who needs financial analysis

Defining the boundaries of financial sustainability of enterprises is one of the most important problems in a market economy. Inadequate financial stability may lead to a lack of funds to finance current or investment activities, while excessive financial stability will impede development by increasing the terms of capital turnover and reducing profits. Justify the parameters of such sustainability allows financial analysis. It not only provides an opportunity to judge the situation of the enterprise at the moment, but also serves as the basis for developing strategic decisions that determine the prospects for the development of the company. Continue reading

How to reduce salary costs in a small business.

Labor productivity.
As I already wrote, you can use both direct and reverse indicators of labor intensity. But many businesses instead of these indicators use a direct indicator – labor productivity and this is limited. In most cases, this may be sufficient. But to assess the impact of salary costs on the overall performance of small businesses, this indicator alone is not enough, and relative indicators should be used.

Labor productivity is a very important indicator. It can be determined for each employee of the business, and for its units. In a small business, for simplicity, you can use the average labor productivity of a small business as a whole. It is defined as the ratio of the cost of production produced over a certain period of time by the business to the number of workers producing it. Those. it is determined how much production in monetary terms each small business employee produces, for example, for a month (or for another period of time). By comparing these indicators, for example, on a monthly basis, you can track whether business workers are working better or worse. Continue reading

Small business profit – its types and how to determine it.

After writing several articles on the effectiveness of small business, I received a letter from a reader asking what profit is in business. I believed that this question is so clear that it is not worth talking about it in detail. In addition, I already wrote about profit in several articles, but have not yet written about it in detail. But profit is the main criterion for a successful business. There is profit – the business exists, there is no profit, and the business quickly disappears.

Introduction.
But thinking, I realized that the reader is right. A story about efficiency will not be complete without fundamental definitions of profit. And further, scheduled for writing, articles on the economy of small business will always be based on the concepts of profit. Therefore, although belatedly, this article appeared. Continue reading

A reliable business plan for dummies
We are thinking Do you already know what kind of business you want to do, who is the consumer of your product or service and how will you sell them?…

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How to evaluate a business plan for long-term development
Targets and goals Strange as it may seem, this part of the business plan is analyzed at the very end and is the quintessence of everything described below. It should…

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What is small business profitability?
Profitability - this term is heard by almost every adult. But not everyone understands what this term means. Not even all businessmen can explain this term. After starting to publish…

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The Great Crises: The Great Rise of the 1850s
The economic recovery of England had a beneficial effect on the countries of Europe. From the middle of 1849, the industry of Germany and France began to operate. At the…

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