Category: Wealth

Powerful Execution

Starting a business comes with never ending obstacles on the path. For example, has this ever happened in your business:  You are passionate, ethical and competent. You are working hard. Yet when you meet potential clients, they constantly, doubt you and the business. Despite your best efforts, the potential client carries a lingering doubt about

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ecommerce, selling online, online sales

10X Value

Imagine  You leave a comfortable job to start a business. Your boss discourages you from doing it. You start the business from your garage. Nobody knows your business. You work really hard at building it. You employ staff. You move to bigger premises. You bring investors on board. Over time, the business grows from strength

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What is Net Profit Percentage?

Net Profit % before/after Tax = Net Profit before or after Tax /Sales Net Profit % before/after Tax shows the profit per R1 of sales after all expenses, excluding/including tax Higher the Net Profit %, the higher the profitability, after expenses

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What is Gross Profit Percentage?

Gross Profit % is also known as Gross Margin % Gross Profit % = Gross Profit / Sales Higher the gross profit %, higher the profitability of business, after direct costs

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What is Net Profit?

Gross Profit Less Operating Expenses  = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses, available to the owners of the business  

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What is Gross Profit?

Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs of making a product  

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What happens if you default on the Debt?

When business secures debt, there are legal obligations between the parties. If the business does not  fulfil those obligations, for example, making timely payments, the funder can seek legal remedy. The funder may repossess assets related to debt or file for liquidation of the business  

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What is current & long term Debt?

Current & Long Term Debt Current portion of long term debt: amount payable in the next financial year (following 12 months) Long term debt = Total debt – current portion per (1) Business must in a position to settle the current portion of the debt

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What is Debt=Equity Ratio?

Debt-Equity Ratio Ratio: Total Debt / Total Equity = % The higher the debt-equity ratio, the higher the risk of the business Ratio rises/falls if debt is increased /decreased or equity decreased/increased

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What is the difference between a Debt and Liability?

Debt versus Liability A provider lends an amount to the business & there is obligation to repay the debt Liability – ALL obligations, something owed to someone Examples of Liabilities: Accrued expenses Trade creditors  Generally debt has interest, liabilities may or may not have interest.

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