Though some restaurant owners ignore the importance of having a good data for the smooth running of their businesses, it doesn’t change the major role a proper data plays and the consequences of having an irregular data in their business.
However there is always a solution for every challenge, with BlueCart your data will be easier to find and you wouldn’t need to deal with confusing excel spreadsheets. BlueCarts makes your life easier by doing all your calculations and transforming your data into an understandable and easy graphs that will help you get updated without getting lost reading reports of your fast-food or restaurant.
When it come to retailing, which covers a major part of business that involves clothing the store, outlets for cell phone, sporting goods and so on, there are some key metrics for such businesses such as;
With the increased number of businesses that fall in the category of fast-food/restaurants in the US, its crucial to know the key metrics guiding this business such as the food cost, labor cost, weekly sales, average order per customer and lastly employee turnover,
At BlueCart no matter you business category, we help you effectively utilize key metrics to make your restaurant more efficient and profitable.
Starting a business is not an easy task especially if you have limited resources, and coupled with the economy downtime experienced by the world. Starting a business involves skills, being open minded, flexible and finally knowing what you’re doing and where you want to be. The main goal of every entrepreneur is to succeed, though success doesn’t come easy. Success in businesses is worked on and it doesn’t come overnight, it requires a lot of strategic planning, persistence and determination. However, if you want to start a business below are 5 things to consider;
Starting a new business takes intelligence, bravery, and endless hours of hard-work, hence you have to properly consider your options and know the height you intend to take the business.
A home business is the quickest and easiest type of business. Most successful business today started from the home. To begin a new business that will be successful eventually, you don’t necessarily need a big space or a huge amount of money. All you need to have is a unique and good idea with a space, then you are ready to go!
However in recent times, a home business requires certain tips to take it to the next level. Below are some tips on how to start a home business quickly;
Though home businesses were not taken seriously in the past, it’s not the case anymore as home businesses are now the fastest growing type of business today. People in general tend to love the idea of being their own boss and working from the comfort of their homes.
The art of figuring out if a business will be successful and worth investing is not an easy task, coupled with the massive amount of stagnant startups out there. Though there are lots of new businesses out there with little or no green-light regarding future success or profitability, there are still some ways you can pick a wining business and choose a startup to invest in without regrets.
Below are 4 major tips on how to choose which startups to invest in…
Investing in a new business is a big deal; hence you need to make sure you do your homework in terms of proper research and investigation before putting a penny into that business.
You should have a good financial knowledge to succeed with a startup even though you have wonderful products lined up, good SEO, fantastic sales, efficient marketing model etc. You cannot just undermine the knowledge of finance while running a business. Along with this knowledge on financial rations is essential for establishing a successful company. This knowledge should rank you up as a smart entrepreneur and investor as you will have sufficient vision for your future company. Below are seven key financial ratios you need to know.
This particular ratio points at the company’s ability to bear its debts using sufficient assets. This ratio is of current liabilities.
This ratio calculates the organization’s entire financial leverage. People measure this using the entire liabilities. It can not only be applied to financial statements that are personal, but also those of corporate ones. The company’s total debt and its total equity ratio should not more than one and a half. Anything more than this should be avoided.
This ratio is the figure that shows the overall health of the company after a certain cost, namely COGS, is cut off. The ratio shows how much money is profited from any amount earned.
The company’s earning depends a lot on the sales. The margin ratio for net profit shows the figure of company’s net profit for each dollar it earns in sales.
This ratio simply measures the firm’s efficiency in using its assets. You need to divide the number of sales by the receivable accounts to get the ratio.
This particular ratio would measure the investment efficiency.
This ratio calculates the company’s profitability with the resources and money invested by the shareholders.
These are seven main financial ratios all startups should know.
All companies need to start with an idea. To realize the dream of a successful company and leading a small startup attempt to that level you must need funding. This will not only grow confidence in you but also help expand your company. However, the traditional funding is done with the help of bank loans or personal loans. These loans often have high interest rate which can take a toll on the long run. In such situation equity investment comes very handy and reliable. Initially equity purchasing appear as creation of debt, but at a later stage it can be transformed as company shares. Let us discuss the steps of equity investment.
Pre-seed funding is the primary stage in terms of equity investment. It is usually done at the initial stage of your startup business. At this stage you might not have a large number of employees working for you, or as less as you and the other partners. Usually commercial banks do not show interest in providing loans at such stage. Alternatively, incubators may also help funding at this point. Their help may come in the form of support services.
At this step friendly investors along with initial-stage VCs may invest in the startup and provide aid to enhance the development. With money the startup starts to grow at this level. What you should do is allocating the resources in such a manner that boosts the company even more. More marketing policies can be taken.
Using pre-money and post-money valuation you need to determine the actual value of the company. This will focus on gross margin and flow of cash.
A capitalization table needs to be assembled at this point after the valuation.
The above mentioned steps are towards equity investment in the early stage of Startup.
For small-business entrepreneurs startup is a very popular model to follow. Many do not have the privilege to gain money form big sources. So, they often have to depend on closed ones for the funding. This is why, if you are choosing a startup option you must be careful about certain things. First of all startup is a risky business. It is highly important to have total understanding of the risks involved with the enterprise. You should also have backup plans for mitigation if anything goes wrong. Let us discuss four important things to remember before getting into startup business.
According to a reliable survey around 50 per cent of new startups fail within their first five years. You might not find any science to calculate the cause of this failure. This is because there is a huge amount of uncertainties involved in this business. The top three can be listed as less market demand, cash flow crisis and not working with the right team. To avoid it you should take help from an experienced investor.
Before making investment you must comprehend the structure of your business. You should find out the liabilities and your source of profits. If you see the level of liabilities is higher than that of profits, you better rethink about starting the business.
There is a chance that you might have to wait longer than usual to see profit in your business. This is difficult to explain as so many variables work in this part.
This is important because once you start the business you might not be able to quit in the middle of it as you might start getting dividends despite success.
So, you should keep the above points in mind before starting a startup.
In the world of trades across the borders taxation plays a huge role. All countries have their distinctive taxation policies. It comes in the form of various methodologies, such as corporate tax, individual income tax, payroll tax and sales tax which includes VAT and GST. These taxes are more or less applicable in most countries. However, worldwide taxation rate has an impact on the investments made in the country. We see government often relaxes taxes at borders so that foreign investors get encouraged to do business. Foreign investment has profound impact on a country’s GDP.
Taxation is a necessity for earning currency for the government. To run and develop the country the government needs a huge funding each ear. It files a yearly spending and earning budget every year. A huge chunk of money of this budget comes from various forms of taxations. But countries across the globe consider socio-economic reality while setting tax rates. The developed countries tend to impose heavier tax on its people, because there people have higher per capita income. On the other hand, in developing countries the governments try to keep the tax rates at a tolerable rate so that people find it convenient to carry on their businesses. Export and import duties and tariffs also play an important role in this matter.
The country that have flexible export and import duty rates encourage more foreign investment. However, to attract most foreign investment a country needs to fulfill certain conditions. It has to ensure a stable political environment. It also has to ensure a growing economy with low wage rate. It has to have plenty of skilled, semi-skilled and low skilled working people. In this case, a report published by Ernst & Young, ranked India as the most attractive investment market. 32 per cent international investors rated it thus in the year 2015.
Post-money and pre-money valuation concepts are fundament concepts of financing of companies. Here valuation means how much the company worth. Both concepts are important because it has to do with how much your company need to sell in case of equity financing, meaning the shares you need to sell to raise money from the investors. The concept of pre-money and post-money valuation has to do with how much my company worth before funding and how much the company worth after funding.
So pre-money is going to be one thing and post-money valuation is going to be the other. Time separates the both states. Let us put it this way, the field of business is always busy with buying and selling stuffs. In terms of putting shares of the company in the stock market, this buying and selling happen constantly. Now, pre-money valuation clearly indicates the company’s total value before it puts its share in the share market to get money from investors.
For example, you might have a company which worth $1 million before you put its share up in the share market for raising fund. This state is indicated by pre-money valuation system. Suppose, you have managed to raise $500 thousand by selling shares. Now the worth of your company stands at $1.5 million which is $500 thousand more than previous value. In this case the shareholders would have 33% share of the company.
Again, if you can manage to raise $1 million from the shareholders by putting the shares of the company on share market, the total value of the company would be in total $2 million. That is the post-money valuation. In this particular case you are owning 50% of the company. This is the basic idea of pre-money and post-money valuation.
Lean canvas model is generally refers to a business model that is a very smart and elaborate one. It does not look like traditional business model with more detailed discussion. Instead, it is one of the simplest ones that touches on the most basic business components. It helps you understand your business at the beginning level. You reflect each part of your business through this model and have clear understanding as to how your business is going to look like. We have to remember this model is for particularly for the startups. The model gets even bigger and more convoluted as the business develops over a certain period of time.
Lean canvas business model has basically nine components where you put your put your basic business ideas and information. In other words, in each part you reflect your concept of your business. It is like the initial sketch of the business. Let us discuss each of the nine boxes that carries specific business strategies.
Box number one contains Customer Segment where you have to mention your target customer. It also has Early Adopter option where you mention the name of your basic customer base. The second box has two blanks to be filled in i.e. Problem and Existing Alternatives. You can put mention the product alternatives in the latter box. In the third box you need to mention Unique Value Proposition which can declare the moto of the company that would trigger your customers to make buying decision. Number four and five contain Solution and Channels. In box number six you need to mention Revenue Streams, meaning the sources of your revenue. Box number seven requires information regarding cost structure. Box number eight and nine has Key Metric an Unfair Advantage.
This is not the entire business plan, rather just a bunch of assumption as to what you think what your business would be.