Improving profitability, driving growth, or just surviving
Managing business growth can feel overwhelming. For early founders and entreprenuers, understanding which levers to pull can be the difference of life of death. Fortunately, there aren’t too many variables to contend with. There are only 7 financial variables in a business.
7 Key Financial Variables
How much does your product or service cost?
How much of your product or service do you sell?
Cost of Goods Sold
What does it cost to provide value to your customer?
Who do you owe money to?
Who owes you money?
How much sellable product do you have on hand?
What are the costs associated to running the business?
If you’re trying to improve cashflow or grow the business, the best solution may involve figuring out how to improve a financial variable you have never explored before.