Latest Blog Posts for Lessons From A Business Classroom

• Reasons why businesses complete a cash flow forecast
  on Apr 27, 2011 in Starting a Business Cash Flow Expenditure Cash Flow Forecast Business Planning Profit Loss
  A cash flow forecast will not show profit and loss.
• Advantages and Disadvantages of different financing methods
  on Apr 26, 2011 in Investing Loans Methods Mortgage Hire Purchase Leasing Shares Factoring Trade Credit Overdraft Sale of Assets Venture Capital Financing
  ...
• The advantages and disadvantages of the main types of finance
  on Apr 25, 2011 in Investing Starting a Business Types of Finance Evaluating Financing a Business
  Each type of finance has its good and bad points. This may well depend upon the type of firm that is involved. Different businesses may require different types of finance at different times. You need to be able to evaluate different types of fin...
• Understanding Return on Capital
  on Apr 25, 2011 in Investing Net Profit Calculation Starting a Business Investment Profit Return on Capital Profitability Capital
  Another method of assessing the profitability of a business is to calculate the return on capital. Capital is the amount of funds invested in a business by its owners. Return on capital is the amount of profit expresses as a percentage of the capit...
• Understanding Net Profit Margins
  on Apr 24, 2011 in Business Advice Net Profit Calculation Net Profit Margin Sales Revenue Profit Costs Forecasts Formula
  Net profit margin is the amount of profit made after all costs of providing the product or service, are subtracted from sales revenue. This includes general overheads too. Net profit = sales revenue - direct costs - overheads or Net profit = gross p...
• Understanding Gross Profit Margins
  on Apr 23, 2011 in Calculation Gross Profit Sales Revenue Costs Gross Profit Margin Formula
  Gross profit is the amount of profit made after the direct costs of making the product or service, is subtracted from the sales revenue. Gross profit = sales revenue - direct costs Gross profit is the amount of profit a business makes after the dire...
• Evaluating ways of improving profit
  on Apr 22, 2011 in Business Advice Profit Loss Evaluation Cutting Costs Improving Profits Examples Method
  In the table I have identified the easiest to hardest way of improving your profit and I have also justified why I have placed it in that particular order. "Normally" cutting costs is seen to be the easiest way of improving profits although this doe...
• What are some ways to improve profits?
  on Apr 21, 2011 in Business Advice Employment Profit Loss Costs Improving
  These are only some of the ways that businesses use to improve their profits, there are many reasons as to why they use each one.
• What is the profit formula?
  on Apr 20, 2011 in Business Advice Calculation Variable Costs Fixed Costs Profit Loss Costs Formula
  The simple profit formula is:Profit = Sales revenue – Total costsBut what happens if you have to calculate sales revenue and total costs first? If this is to happen you will have to use the slightly more complicated formula.Profit Formula = (sellin...
• What are some of the costs for a typical business?
  on Apr 19, 2011 in Starting a Business Variable Costs Fixed Costs Expenses Costs Examples
  This chart should make you aware of only some of the costs that a typical business would come across.

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