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Financial Variables

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

Price

How much does your product or service cost?

Volume

How much of your product or service do you sell?

Cost of Goods Sold

What does it cost to provide value to your customer?

Accounts Payable

Who do you owe money to?

Accounts Receivable

Who owes you money?

Inventory

How much sellable product do you have on hand?

Overhead Expenses

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.