We’re excited to announce the LivePlan 2021 State of Small Business Survey. Add your voice to our community of entrepreneurs and help other businesses grow.
By Bplans
It is an incredible time to be a small business owner. Customers, now more than ever before, truly care about who they buy products and services from, and how those companies align with their values. From the shoes we wear to the dish soap we use, there are endless options for consumers to choose from. Pair that with internet access, and more power than ever before sits in the hands of the buyer.
Variable costs are costs that fluctuate in direct proportion to the volume of units produced. The best and most obvious example are physical costs of goods sold, direct costs, such as materials, products purchased for resale, production costs and overhead, etc. The concept of variable cost is an important component of risk in a company,...
Channel conflicts refers to a situation where one or more channel members believe another channel member is engaged in behavior that is preventing it from achieving its goals. Channel conflict most often relates to pricing issues.
The balance sheet is a snapshot of your company’s assets, liabilities, and owner’s equity, and is one of 3 essential financial statements.
Break-even point is output of the standard break-even analysis. The unit sales volumes or actual sales amounts that a company needs to equal its running expense rate and not lose or make money in a given month. The formula for break-even point in units is: The formula for break-even point in sales amount is: =...
Cost of sales refers to the costs associated with producing the sales. In a standard manufacturing or distribution company, this is about the same as the cost of the goods sold. In a services company, this is more likely to be personnel costs for people delivering the service, or subcontracting costs. This term is commonly...
Obligations incurred are business costs or expenses that need to be paid, but wait for a time as accounts payable (in other words, bills to be paid as part of the normal course of business) instead of being paid immediately. For more on the subject, see our article on the LivePlan blog: What Is Accounts...