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Digg it UP - Making A Profit In Business
Pornography, a multi-million industry, is good business. Adult videos and magazines are always doing brisk sales. But aside from these forms of media, billions of people around the world turn to the Internet to access pornography. Finding an Internet connection is not hard these days. Some people no longer use a traditional plug-in modem to connect to the web, and instead use wireless modems and cellular phones. This becomes a big problem for people who run adult websites because it is now easy to hack into their sites and enter it illegally.Getting your own siteSo how does one run this kind of business? The most important th
Why is it that when one asks an executive "What size is your company?" the answer is almost always "We have sales of $xxxx!"
Well whoopy doo, however it tells us nothing about how the company performs or about its efficiency or lack thereof!
Why can't we say "We are a company that has a profit of 17% of sales?" Now that tells us a lot more about the company, its efficiency etc.
I am sure this "Sales" story has come about from embarr
If you own or operate a business in California or another state that is besieged with complex business regulations and a burdensome tax system, you may wish to consider relocating your business to Incline Village. Nevada offers a much more business friendly environment than virtually anywhere else in America and there are no corporate or personal income taxes payable at the State level. The tax savings alone can make it beneficial to relocate a business to Nevada and purchase a nice home in many communities.One of the primary benefits of relocating to Northern Nevada and Incline Village in particular is that we have a very safe c
Business is no different to a professional sporting venture in that it requires;
- Working as a team.
- Having flexible game plans. (strategies)
- The ability to conduct detailed analysis.
- Sound administration.
- Choosing good support.(suppliers, employees and professional advisors)
- Respecting and knowing your opposition.
- Introducing plenty of training.
- Playing to win.
The very foundation of good performance in any company comes down to structuring your financials properly. From this solid foundation, you can then build a far more profitable business.
- Core business sales
Sales do not reflect the profitability of the company, but rather reflect the base on which to structure the company's costs, and consequently, the company profits. (See graph 1 for a typical, commercially sound structure.)
Sales need to be:
- Within the core business of the company.
- Quality sales.
- Paid for within a reasonable time.
- A good mix across customers and product groups.
- Value adding costs
Value adding costs are made up of
- Direct Labour plus on costs.
- External costs.
- Materials
- Subcontractors
- Components
- Costs assisting the value adding process
These costs often referred to as overheads. These costs are made up of:
- Indirect Labour
- Supervisors and managers.
- Stores personnel.
- Truck / forklift drivers.
- Cleaners.
- Factory Overheads (Burden)
- Workshop consumables.
- Freight.
- Motor vehicles.
- Depreciation.
- Interest.
- Factory administration.
- Rent and associated outgoings (rates, water etc.)
- Energy.
- Gross profit
Gross profit is calculated as the Sales less the value adding costs and the costs assisting the value adding costs.
The gross profit is the primary 'financial' key performance indicator, as it determines how much of the sales revenue is left to maintain the operations of the company and final profitability.
- Operating Expenses
Operating Expenses are all those expenses required to efficiently operate the business and are made up of
- Administration costs.
- Marketing costs.
- IT costs.
- Financial costs.
- Operating Profit
Operating profit is the secondary 'financial' performance indicator and determines the overall performance of the company. It is not the final profit (or loss) the company makes but rather the profit after all core business sales and expenses are taken into account.
The operating profit is calculated from the gross profit less all the operating expenses.
In some cases where companies have a reasonable amount of 'non-core' expenses and income (such as school fees, private flying lessons, sale of assets, government grants etc.) we would list these AFTER operational profit but BEFORE calculating our profit before tax (PBT.) The question is then "Why bother to have an Operating Profit?"
There are 2 main reasons for this;
- To conduct proper analysis of the company it is important we don't contaminate the core business information with non-core data.
- In most medium to large companies, the major share holders are not running the company on a day to day basis, but do have a significant amount of control. The day to day running is left to managers and executives. In these instances, you want to measure their performance on core business income and expenditure, not on income and/or expenses over which they have no control.
Why is it that when one asks an executive "What size is your company?" the answer is almost always "We have sales of $xxxx!"
Well whoopy doo, however it tells us nothing about how the company performs or about its efficiency or lack thereof!
Why can't we say "We are a company that has a profit of 17% of sales?" Now that tells us a lot more about the company, its efficiency etc.
I am sure this "Sales" story has come about from embarra
The terms merger and acquisition are frequently used as if they are synonyms, but have different implications. The major difference between a merger and an acquisition is their mode of finance.Mergers as well as acquisitions involve one or many companies purchasing all or part of another company. A merger is a result of two firms, often of similar size, agreeing to move ahead and exist as a single new company. This sort of action in particular is referred to as a "merger of equals." Mergers are mostly financed by a stock swap. In a stock swap, owners of stock in both companies receive an equivalent measure of stock in the newly for
- Core business sales
Sales do not reflect the profitability of the company, but rather reflect the base on which to structure the company's costs, and consequently, the company profits. (See graph 1 for a typical, commercially sound structure.)
Sales need to be:
- Within the core business of the company.
- Quality sales.
- Paid for within a reasonable time.
- A good mix across customers and product groups.
- Value adding costs
Value adding costs are made up of
- Direct Labour plus on costs.
- External costs.
- Materials
- Subcontractors
- Components
- Costs assisting the value adding process
These costs often referred to as overheads. These costs are made up of:
- Indirect Labour
- Supervisors and managers.
- Stores personnel.
- Truck / forklift drivers.
- Cleaners.
- Factory Overheads (Burden)
- Workshop consumables.
- Freight.
- Motor vehicles.
- Depreciation.
- Interest.
- Factory administration.
- Rent and associated outgoings (rates, water etc.)
- Energy.
- Gross profit
Gross profit is calculated as the Sales less the value adding costs and the costs assisting the value adding costs.
The gross profit is the primary 'financial' key performance indicator, as it determines how much of the sales revenue is left to maintain the operations of the company and final profitability.
- Operating Expenses
Operating Expenses are all those expenses required to efficiently operate the business and are made up of
- Administration costs.
- Marketing costs.
- IT costs.
- Financial costs.
- Operating Profit
Operating profit is the secondary 'financial' performance indicator and determines the overall performance of the company. It is not the final profit (or loss) the company makes but rather the profit after all core business sales and expenses are taken into account.
The operating profit is calculated from the gross profit less all the operating expenses.
In some cases where companies have a reasonable amount of 'non-core' expenses and income (such as school fees, private flying lessons, sale of assets, government grants etc.) we would list these AFTER operational profit but BEFORE calculating our profit before tax (PBT.) The question is then "Why bother to have an Operating Profit?"
There are 2 main reasons for this;
- To conduct proper analysis of the company it is important we don't contaminate the core business information with non-core data.
- In most medium to large companies, the major share holders are not running the company on a day to day basis, but do have a significant amount of control. The day to day running is left to managers and executives. In these instances, you want to measure their performance on core business income and expenditure, not on income and/or expenses over which they have no control.
Why is it that when one asks an executive "What size is your company?" the answer is almost always "We have sales of $xxxx!"
Well whoopy doo, however it tells us nothing about how the company performs or about its efficiency or lack thereof!
Why can't we say "We are a company that has a profit of 17% of sales?" Now that tells us a lot more about the company, its efficiency etc.
I am sure this "Sales" story has come about from embarr
Machining techniques are used widely in the automotive industry for manufacturing different automobile components such as outer body sheets, internal components, and windscreens. Automobiles are produced in an assembly line that requires the same type of components for producing them in large volumes. Different components are prefabricated using machining processes and transferred to the assembly line for final production.One of the most common automotive machining techniques in use today is known as wire electrical discharge machining (EDM). Wire electric discharge machining (EDM) uses a wire electrode that travels through the cond
Gross profit is calculated as the Sales less the value adding costs and the costs assisting the value adding costs.
The gross profit is the primary 'financial' key performance indicator, as it determines how much of the sales revenue is left to maintain the operations of the company and final profitability.
Operating Expenses are all those expenses required to efficiently operate the business and are made up of
- Administration costs.
- Marketing costs.
- IT costs.
- Financial costs.
Operating profit is the secondary 'financial' performance indicator and determines the overall performance of the company. It is not the final profit (or loss) the company makes but rather the profit after all core business sales and expenses are taken into account.
The operating profit is calculated from the gross profit less all the operating expenses.
In some cases where companies have a reasonable amount of 'non-core' expenses and income (such as school fees, private flying lessons, sale of assets, government grants etc.) we would list these AFTER operational profit but BEFORE calculating our profit before tax (PBT.) The question is then "Why bother to have an Operating Profit?"
There are 2 main reasons for this;
- To conduct proper analysis of the company it is important we don't contaminate the core business information with non-core data.
- In most medium to large companies, the major share holders are not running the company on a day to day basis, but do have a significant amount of control. The day to day running is left to managers and executives. In these instances, you want to measure their performance on core business income and expenditure, not on income and/or expenses over which they have no control.
Why is it that when one asks an executive "What size is your company?" the answer is almost always "We have sales of $xxxx!"
Well whoopy doo, however it tells us nothing about how the company performs or about its efficiency or lack thereof!
Why can't we say "We are a company that has a profit of 17% of sales?" Now that tells us a lot more about the company, its efficiency etc.
I am sure this "Sales" story has come about from embarr
One of the best things about the 5K business model (a business you start for $5,000 or less) is that it is tailored for people who want to be their own boss, live their lives on their own terms, enjoy their work thoroughly, and still make a tidy profit. Though the popular notion is that you want start a new business because you want to make pots of money, there are thousands of people who are motivated by the flexibility and freedom a small business offers more than financial growth.But if you have ever picked up a book on starting and running a small business, you know most of them are written for people who want to start small but
Operating profit is the secondary 'financial' performance indicator and determines the overall performance of the company. It is not the final profit (or loss) the company makes but rather the profit after all core business sales and expenses are taken into account.
The operating profit is calculated from the gross profit less all the operating expenses.
In some cases where companies have a reasonable amount of 'non-core' expenses and income (such as school fees, private flying lessons, sale of assets, government grants etc.) we would list these AFTER operational profit but BEFORE calculating our profit before tax (PBT.) The question is then "Why bother to have an Operating Profit?"
There are 2 main reasons for this;
- To conduct proper analysis of the company it is important we don't contaminate the core business information with non-core data.
- In most medium to large companies, the major share holders are not running the company on a day to day basis, but do have a significant amount of control. The day to day running is left to managers and executives. In these instances, you want to measure their performance on core business income and expenditure, not on income and/or expenses over which they have no control.
Why is it that when one asks an executive "What size is your company?" the answer is almost always "We have sales of $xxxx!"
Well whoopy doo, however it tells us nothing about how the company performs or about its efficiency or lack thereof!
Why can't we say "We are a company that has a profit of 17% of sales?" Now that tells us a lot more about the company, its efficiency etc.
I am sure this "Sales" story has come about from embarr
Employers can be liable for secretly placing a video camera in an employee‘s office, even if the employer does not view any of the video. An employer must control his watchful eye and use it in limited circumstances.A California employer, who operates a residential facility for abused children, placed a camera in an office to determine who was accessing pornographic websites at night. The camera was activated at all times in the office. The employer told a few employees about the camera, but not the female employees occupying the office, because the employer feared that these talkative employees may inform the perpetrators. Whi
Why is it that when one asks an executive "What size is your company?" the answer is almost always "We have sales of $xxxx!"
Well whoopy doo, however it tells us nothing about how the company performs or about its efficiency or lack thereof!
Why can't we say "We are a company that has a profit of 17% of sales?" Now that tells us a lot more about the company, its efficiency etc.
I am sure this "Sales" story has come about from embarrassed business people who can sell heaps but cannot bank any of the profit, simply because profit is a bit like practical business tools, very scarce!
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