Gross profit and profit margin sound very similar, yet they are very different and serve distinct purposes for analyzing your business. Gross profit is found by taking the net sales minus the cost of goods sold. For example, to find gross profit, a dressmaker make add up all of the receipts for the dresses sold, then [...]

Financing is typically divided into two different categories, Debt Financing and Equity Financing. Understanding the different financing options is a critical step in a company’s financial planning strategy. Debt Financing involves borrowing money that will be paid back over time. The debt can be short term (less than one year) or long term (more than [...]

In my local paper today there was an article about a night club owner who is being sued by the neighboring businesses. As I was reading, I couldn’t help but lecture the business owner for not doing his research or more of it before spending ALL that money, $1million to be exact, and opening his [...]

You need some new equipment or an new vehicle for your business. Do you lease or buy? The last blog post discussed the pros to leasing, which can be attractive when you don’t have idle cash available to make a down payment or the risk of obsolescence is high (i.e., when technology changes fast). It [...]

Is it time to replace an outdated computer, piece of equipment or automobile? If so, are you going to lease or buy the new asset? There are pros and cons to both options. The blog post on June 3rd will discuss the pros associated with buying an asset. When you lease an asset the transaction [...]