26 Sources of Capital – All You Need to Know
Business Finance

26 Sources of Capital – All You Need to Know

Once upon a time Capital used to be the scarcest available source of the business. Now the talent has taken over the top slot and capital has become abundant. But as it comes with multiple choices, which source and which type of capital is relevant for the business is another challenge. All forms of money are not equal.… Continue reading 26 Sources of Capital – All You Need to Know

Fatal Ignorance
Business Finance

Not Knowing Financial Ratios Can be Fatal for Your Business

“The number one problem in today’s generation and the economy is the lack of financial literacy.” Alan Greenspan Alan Greenspan is not true for personal finance but he is also right for entrepreneurs. Entrepreneurs whose success is determined by financial performance many times do not understand the nitty-gritty of finance. According to a recent survey by the National Financial Educators Council Americans… Continue reading Not Knowing Financial Ratios Can be Fatal for Your Business

Marginal Costing
Business Finance, Money & Economics

You Need to Know How Selling Cheap also Could be Profitable

One plate Dosa at a restaurant costs Rs. 90/- which Uber Eats delivers to us at Rs.40/-   This is a huge bargain for us. The question struck in our mind is how Uber eats and Swingy can deliver food at a cheaper price than the price we pay at the restaurant? We believe it as… Continue reading You Need to Know How Selling Cheap also Could be Profitable

Asset Liability Mismatch
Borrowing, Business, Business Finance

All Money Is Not Equal & Entrepreneurs Need to Know This

“We were not taught financial literacy in school. It takes a lot of work and time to change your thinking and to become financially literate.” Robert Kiyosaki M/S ABC Enterprise is facing a liquidity crisis. The bank has sanctioned them working capital loan. In an emergency, they used the borrowed money by way of working capital… Continue reading All Money Is Not Equal & Entrepreneurs Need to Know This

Accounting Data
Business Finance

Do Not Let Your Profit Figure Fool You

“Accounting is the language of business.” Warren Buffett Profit and Loss account shows the profit a business earns. But this could be illusionary if the entrepreneur is not aware of the accounting. Usually, companies play with the profit to satisfy the bankers and to evade taxes. This is a fine balance. For bank projected profit… Continue reading Do Not Let Your Profit Figure Fool You

Cashflow Profit
Business Finance

Dear Entrepreneurs, Cashflow Is Not Your Money

One of my known entrepreneurs used to enjoy a lavish lifestyle, bought a costly car, indulging in family foreign tours, and everything peripheral was also indicative of good business and profit. After one year, I came to know that he defaulted on bank loans. His account becomes NPA, and several private loans recovery issues cropped up. His… Continue reading Dear Entrepreneurs, Cashflow Is Not Your Money

Benefits of Shorter Cash Conversion Cycle
Business Finance

CCC is the Ratio Every SME Needs to Focus On

Your heartbeat, blood pressure, cholesterol all levels you keep under check. Though competitive business atmosphere makes it difficult to keep all these health parameters under your control. One business ratio though can help you to keep your above health parameters in check. Most SME suffers from a cash flow crisis. This is their daily struggle.… Continue reading CCC is the Ratio Every SME Needs to Focus On