How To Become a Millionaire

Everybody can become a millionaire but you need to learn how to become one. You cannot become a millionaire by wishful thinking. If wishes were horse, beggars would ride. If you will ever become one, you need to do what millionaires do. It is more of principles. When you apply it correctly, you easily become one. The great Book in history makes us to understand that many people want to go to the city but they don’t know the way to it. In the same manner, many people want to become a millionaire but they don’t know how to make Continue ReadingHow To Become a Millionaire

How to Calculate Break Even Point in Business Plan

How To Calculate Break Even Point (BEP) in Sales and Units. Let me assume that you don’t know how to calculate break even point. But before we start talking about how to calculate the break even point, it is important you have the understanding of what the break even point is. Break even point analysis is a key financial analysis tool which you need to understand how to use as a business owner. It will help you in your pricing decision. Break even point is the point at which sales equal expenses. That is, a point at which you are Continue ReadingHow to Calculate Break Even Point in Business Plan

How to Prepare Cash Flow Forecast for Small Business

Preparing cash flow forecast does not require a high level of skill in accounting. Cash flow forecast is a vital tool you can use to control the financial aspects of your small business. Companies don’t go bust because they lose money; they go bust because they run out of money. Most small businesses equate success with sales volume and profit. The reality is that a business can become insolvent in the middle of its best year in terms of sales and profits! Therefore there is a need to be very careful of cash flow where the business is growing rapidly.  Working Continue ReadingHow to Prepare Cash Flow Forecast for Small Business

Developing A Marketing Strategy For Small Business

If You Have A Marketing Strategy in Place, Selling Becomes An Easy Task. Having a marketing strategy will play a crucial role in the success of any product or service. No matter your innovation or the ingenuity of your offering, if customers do not get to know about it, there is no way it will sell.  “Doing business without advertising is like winking at a girl in the dark.  You know what you are doing, but nobody else does”, said Stuart Henderson Britt. Marketing is all about putting the right product in the right place, at the right price, at the right Continue ReadingDeveloping A Marketing Strategy For Small Business

Understanding Margin of Safety in Business Plan

Margin of Safety is a term every small business owner must learn and understand. Margin of safety(MOS) is the amount by which your budgeted or actual revenue has to drop before you reach your breakeven point. In the other word, it is the excess of budgeted or actual sales over the break even sales figure. To calculate Margin of Safety, you will subtract the breakeven sales from the actual sales or budgeted sales. It depends on the figure you are working with. Then you divide the result by the actual sales or budgeted sales.  That is: Margin of Safety  =  Continue ReadingUnderstanding Margin of Safety in Business Plan