Category: Content

Is the Stock Market Considered Gambling?

Is stock market gambling? Should people think trading in the stock market is a method of Gambling? The answer to these queries is clear – No! Investing in the stock market is considered Gambling, and beginner investors must not think of it.

Comparing the stock market to Gambling is a myth that people on the television and internet have continued for many years. And it is simply not true.

While Gambling and investing have some of the same characteristics, they are much different. Suppose the investor does not take buying or sharing of mutual funds or trading stock seriously and links it to Gambling. In that case, they are in curial jeopardy of missing out on gains and losing money from the stock market they utilize in retirement.

Why Stock Trading is Not Gambling

Stock is ownership

Investors should remember that they are purchasing ownership in an organization when purchasing common stock shares. Investors own a minimal percentage of the organization.

Purchasing an organization’s stock is equivalent to containing a claim on the debts, assets, and, more significantly, a small part of the organization’s profit whose stocks you purchase. Far too often, investors search to buy shares of the organization simply as trading stocks. They overlook that they are now the owner of the organization, too.

To develop a benefit and profit from your share trading, investors should try to gauge the organization and its performance. Incorrectly counting versions in the short and, more significantly, share prices vary over the long period of stock exchanges.

The income outlook for business is constantly varying, and investors are utilizing news, stock charts, fundamental analysis, rumors, and company metrics to estimate the future earnings of an organization and, subsequently, the worth of its share in the future.

The worth of a company

Trying to control the value of an organization’s stock price and where it is going in the future is not easy. Many variables move the short-term value of a company’s stock. Determining the value of a company’s stock price and where it’s going in the future isn’t easy. There are a lot of different variables that move the short-term price of a company’s stock. They often appear to be random, but they’re not really. They often seem to be spontaneous, but they are not really.

Over the long haul, an organization’s share is the present worth of all the organization’s income. An organization’s stock price is much more volatile in the short term. An organization can trade stocks even without payment or profit because investors think they will have upcoming earnings. But, eventually, an organization’s share price will display the company’s true worth.

Similarities in Investing and Gambling Strategies

Risk

Both Gambling and investing contain risk. You have to jeopardy capital in the way to attain worth in both the casino and stock market. The danger gamblers and investors take on provides them the right to gain more than they wagered.

However, gamblers and investors should know how much danger they can bear. Each speculator and investor has some risk tolerance that they are eager to lose. You should know your risk tolerance before you initiate Gambling and investing. They do not know when to stop or sell, making you susceptible to potentially losing more than you planned.

The Difference Between Gambling and Investing Strategies

Limits to investing losses

Investors can often restrict their losses to get out of a trade if they lose money. Stock investors can maintain a trading order called a stop loss with their broker or online brokerage company to control their losses. Your shuls place a stop-loss order after buying stocks 10% lower than the purchase price if a selling frenzy hits the company before you can get it to sell stocks.

The time horizon for trading and Gambling

Time horizons are another difference between Gambling and investing. They are apart from Gambling, even if you are day trading, simply purchasing and holding, or swing trading your investments. Most Gambling is a time-based event with a set end date or time when you discover whether you have won or lost your bet. Investing can continue forever in some cases.

Bottom line

Investing and Gambling have a lot of similarities. But they are also different. Investing in the stock market is not Gambling.

Comparing the stock market to Gambling is a myth that is not true. Both involve danger and each possible way to maximize profit, but investing is not Gambling and vice versa. Each plays a different role in society, but investors must not confuse where the similarities end and make each one different.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

What Elements Decide the Creditworthiness of a Business Owner?

Most businesses usually operate on credit lines. If not credit, many business owners resort to loans and investment plans to conduct needed business expansions or pull the company out of debt. However, lenders must consider a lot of things to approve business loans. 

One of the essential things for lenders, be it an independent investor or a bank, to consider is the creditworthiness of the business owner applying for the loan. Creditworthiness refers to the overall financial standing, history, collateral, and liquid value of the individual or business owner applying for a loan.

Several factors determine the creditworthiness of an individual. While there are no internationally or legally set standards for assessing the creditworthiness of an individual, banks and investors resort to the 5Cs of credit analysis to gauge whether a business is worth taking the risk or not.

The 5Cs include:

• Capacity
• Capital
• Condition
• Character
• Collateral 

Here is a brief overview of these five elements which decide the creditworthiness of a business owner. 

• Cash flow situation: The Capacity accounts for the cash flow statements of the business. For an investor to approve loans, there must be cash-flow statements from the past and present and those based on future projections.

These cash flow statements provide a clear insight into the business performance in recent history, areas of strength and weaknesses, and the potential for growth in the coming years. Investors and lenders usually require a cash-flow projection of at least three years to lend money to the business. It is imperative to have updated financial statements, including cash flow, income, and balance sheets, to convince lenders of your business’ capacity. 

• Total invested business capital: This accounts for the total amount of personal investment, earnings retained, and any other controlled assets under the business owner’s name.

The capital is primarily viewed as an alternate source of making money, either by liquidating these assets if necessary or using them as guarantees. Usually, banks measure the capital as a percentage of the total investment cost. It is more of the lender’s security: the higher the capital, the higher the chances for banks to sanction the loan. 

• Economic conditions and loan settlement points: These refer to the requirements of the loan itself. They account for economic fluctuation, changes in currency rates, deflation and inflation, and any other factors contributing to the loan deal’s monetary aspects.

In addition to these economically dependent conditions, lenders consider interest rates, repayment schedules, and span, as well as principal amounts. Once the loan is approved, the requirements are made a formal part of the agreement. 

• Business owner’s history and history of previous repayments: This accounts for the borrower’s previous credit history and record with loans, debts, and payments.

The character reflects the borrower’s reputation in financial dealings and speaks for reliability and honesty. This assessment can be both qualitative and quantitative. In terms of quantitative measures, the character can conveniently be judged by the repayment schedule as promised in previous credit records and credit history score through third-party analysis. Qualitatively, this includes the borrower’s connections and reputation among the business circles. Banks put a lot of weight on the previous credit history and character.

If, by any chance, the borrower has filed for bankruptcy or was unable to make repayments as per the schedule, he is less likely to get the loan sanctioned from the bank. 

• Additional guarantees & collaterals include any personal warranties or assets nominated by the borrower in the deal. Deposits can consist of savings or any other investments for individuals. For businesses, collateral includes any equipment or assets owned within the business premises and any receivable payments in the business accounts. The ease of liquidation by banks usually measures collateral. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

With a shortage of top talent today, managers and business owners must keep one step ahead of their competition to survive. Not only do you need to pay the top performers well and bring them up in the hierarchy, but you also need to establish your brand reputation. You have to become a forward-thinking organization. If you downplay the importance of bringing innovations, you will lose a huge opportunity to bring growth and development to your manufacturing organization. 

Innovation is a simple way of solving problems and creating values in new ways. When your employees feel that you take them as innovators and value change, they become motivated to support that notion. 

Employee-driven innovation brings value and engages people in ways that top-down directives never can. 

Let us discuss the ways that work as driving forces to bring change and facilitate innovation in your manufacturing organization. 

Driving Forces of Change

• Make every individual responsible for innovation

You have to make innovation a part of your organization; no matter their level in the chain, they must contribute accordingly. To do their job well, they need skills and tools for innovation and willingly open themselves for the necessary training. When they use these skills and tools to become productive, they bring more to the table regarding innovations. Managers evaluate them based on their productivity. They have to treat innovation in the same way as change happens when everybody embraces that change. 

• Develop processes that support change

Another driving force to bring change in your manufacturing organization is to develop processes that facilitate that change. All the employees of that organization use a structured creative process to contribute to changes. As an owner, you must set the strategies and encourage your employees to monitor the progress. The innovative organizational approach helps select new funding ideas. When there are processes to develop, innovations will follow. 

• Go beyond developing products

All the significant innovations happen by considering your products. Innovations transform services, processes, and channels to bring them a step closer to the intended change. You must go beyond product innovation and allow your organization to grow internally and externally. 

• Create support teams

While innovations are the responsibility of every individual, they cannot do it alone. People need to join an innovative team that works hard to bring change. Everyone in the team has to remain curious, humble, and proactive. If anybody does not follow the rules, they must be called out. People need to accept feedback from others in the team and consider it an integral part of the innovative force. 

• Welcoming new ideas

When you welcome new ideas, your people will bring new ideas to you without hesitation. Everybody needs to feel valued, and respecting other people’s ideas is the way to promote an environment of change and innovation. Great solutions emerge from having many ideas and then evaluating those ideas to pick the best one. Many tools and techniques are available to find the best idea for your organizational innovation. 

• Cut down on the workload

An overly exhausted workforce will never bring the chance that you need to make your organization progress further. Innovations cannot take root if a hefty workload wears them down. People are most creative when they are busy but not overwhelmed. Ensure that every department has adequate staff so everybody has the mental capacity to be active and creative.

• Be available

Always be available to facilitate and support the idea of change in your manufacturing organization. People might look up to you as a father figure or a mentor, and you must counsel them accordingly. Ensure that you remain available and accessible and offer words of encouragement whenever possible. Let everybody know that you feel good to have them share their views and ideas. 

• Set a reward system

Setting a reward system for your team members is the best way to keep their motivation high. A reward does not need to be a substantial monetary benefit or a vacation; it can be a kind gesture or note of acknowledgment. These small steps bring huge change when considering yourself as a winning organization. 

• Introduce new blood

Always hunt for new talent and fresh people to bring into your organization. New people carry an aura of innovation and inspiration for others to follow. Consider creativity like a muscle that becomes powerful with each new set of weights. Similarly, new talent can boost your overall innovative capacity. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Digital marketing has emerged as the most effective method for scaling your business in this information era. However, digital marketing consists of several components, so it is certainly not a one-person job. This is where a digital marketing agency comes into play. A digital marketing firm can help your business flourish by providing industry expertise and the latest digital marketing tools. Moreover, it is also economical for your brand. This article will discuss a few key benefits of outsourcing your digital marketing needs.

Build Brand Recognition

Brand recognition is an essential element of your business’s success. If your company does not have an online presence, your targeted audience may be unaware of your brand’s existence in the market. Hiring a digital marketing agency can enable you to enhance your brand recognition. Digital marketing specialists know which tools will effectively convey your business’s message to the targeted audience. In the business world, time and consistency mean everything. If you are not delivering to your clients on time, your business cannot grow. An effective digital marketing strategy can help you increase brand awareness, sales, and customer loyalty.

Provide Access to the Latest Technology & Methods

To curate an effective digital marketing strategy, you need access to various resources, such as social media advertising, content marketing, search engine optimization, and pay-per-click advertising. You can unlikely gather all these resources independently as it is time-consuming and expensive. In contrast, a digital marketing agency has all these services under one roof. It has various departments where experts streamline and manage different projects efficiently. Moreover, the firm has premium software and technology to cater to all your digital marketing needs.

Craft High-Quality & Relevant Content

One of the significant factors that contribute to the success of your digital marketing campaign is great content. If you want your clients to stay loyal to your business, you must brew fresh and relevant content each day. This is where a digital marketing firm comes to the rescue. Content marketing experts always stay updated with the latest trends and news and curate content accordingly to enhance your brand recognition. Furthermore, they thoroughly analyze your business to determine what content will appeal the most to your targeted audience. Content is a crucial factor in the success of your digital marketing strategy, which an experienced firm will never compromise.

Improve Conversion Rates

One of the primary goals of an effective digital marketing strategy is to increase conversion rates. Having hundreds of subscribers on social media is a good thing, but it is not enough for the growth of your brand. It is essential to turn these individuals into regular buyers. Hiring a digital marketing agency will enhance your business’ growth by converting social media followers into loyal customers. Digital marketing experts understand all the complexities of sales and how to nurture leads into clients.

Adapt to Changing Search Engine Algorithms

A digital marketing agency can also help your business adapt to the changing search engine algorithms. Search engines, such as Google, regularly update their algorithms. These frequent updates can have an impact on your SEO strategy. The digital marketing firm will closely monitor these critical changes and adjust your strategy according to the new rules. This will prevent your pages from getting de-ranked on search engine rankings. You may think SEO depends only on keywords, backlinks, and content. However, site architecture and a responsive web design contribute to a higher ranking. A digital marketing agency will take care of all these factors.

Help Budget More Efficiently

You may think that outsourcing digital marketing will be heavy on your pocket. However, it is quite the opposite of that. Hiring a digital marketing agency can be cost-effective. The firm will help you curate a budget for your campaigns and determine which platform suits your business’s goals. The digital marketing experts will conduct thorough research and ensure that your money is spent improving your brand’s recognition, maintaining its strengths, and minimizing its weaknesses.

The Bottom Line

As discussed earlier, outsourcing digital marketing can open many growth opportunities for your business. A digital marketing firm has the experts and resources required to scale up your business, reach untapped markets, enhance brand recognition, and create a loyal customer base.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Overhead cost is the sum of all the direct and indirect expenses associated with running a business. Direct costs entail expenses that are directly linked to the production of goods or services.

In contrast, indirect costs include overhead expenses such as rent, payroll, advertising, and other expenses that are not directly related to the product creation process.

Whether the expenses are direct or indirect, they contribute to the overall revenue generated by the business. The net profit is determined by deducting all the overhead costs involved. Understanding overhead costs and their impact on business operations can be challenging for new business owners. In this article, we have simplified overhead cost calculation and its effect on business operations.

What is an Overhead Cost?

Overhead costs are mostly costs that are not directly associated with profit generation. However, they perform a critical support function for adequately running the business. Overhead costs also differ from company to firm. For example, the overhead costs for a freelancer will include utility bills and seat occupancy costs, and contrarily, for a retailer, it will consist of space rent, insurance, and wages. Below is a list of expenses included in the overhead cost

• Office space rent
• Utility bills
• Office Supplies such as computers, stationery and other equipment 
• Insurance & mortgages (if any)
• Travel and logistics expenses 
• Advertising and marketing expenses 
• Taxes, depreciation, and government licenses 

Categorizing Overhead Costs

Some organizations further break down overhead costs into various categories for easy calculation and prioritizing costs. 

• Manufacturing overheads: Any cost arising from your product’s manufacturing facility is considered a manufacturing overhead. Overhead is apart from direct labor & raw material costs. 
• Selling overheads: Costs such as logistics, advertising, and all other areas that aid in selling products fall under the selling overheads category. 
• Administrative overheads: these are office operational costs and include rent, mortgages, utilities, payroll, taxes, and depreciation. 

Why is it Essential for Businesses to Consider Overhead Costs?

It’s important for businesses to consider their entire overhead cost. Inexperienced business owners often only calculate the direct cost of creating their product or providing their service and then set their prices based on those calculations. However, to be truly profitable, it’s crucial also to consider the overhead cost when determining pricing. This allows for the selection of an excellent long-term strategy and helps keep the budget in check.

How to Calculate Overhead Costs?

Calculating your business’s overhead costs is crucial, especially when deciding the pricing for your product or service. A profitable product promises profit even after deducting the indirect/overhead costs incurred. 

• Step 1: To calculate the overhead costs, you must first bind every cost incurred to a period. Any quarterly, annual, or weekly expenses should be broken down or accumulated in a month. Once you have categorized quarterly incurred and weekly expenses as the total monthly overhead costs, bear in mind that for different industries, overhead costs differ. A graphic designer is the critical service provider for a web design company and includes the direct prices. In contrast, a designer design company’s sign support services for a web design company are included in overhead expenses. With your monthly overhead cost calculated, estimate the overhead rate by dividing the overhead cost by the total sales amount.
  • Overhead rate (%) = Monthly overhead cost / monthly sale amount
• Step 2: Next, calculate the overhead allocation rate. Allocation is the amount of money allocated in overheads for every hour utilized in making the product. 
  • Overhead allocation rate ($) = Total overhead /bor hours 
• Step 3: Lastly, calculate the overhead per unit. To calculate, you will multiply the overhead allocation rate per hour by the number of hours required to manufacture the product you are selling. This equation gives you the final overhead price per product, allowing you to decide your product’s pricing quickly  
  • Overhead price per unit ($) = Overhead Per Hour X Total Number of Hours Required for Manufacturer

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

There are several options that an owner can use to help grow their business, and the ability to finance a business adequately can significantly impact that growth. Below are a few helpful tips that a person can use to increase purchases, turnover, and new equipment and get into new premises while taking advantage of upcoming growth-related opportunities.

Using Finance to Increase Annual Revenue

A growing business will experience increased revenue, suggesting that the business position is growing, improving, and gaining more clients. It, in turn, means that the business is selling more products or that more clients are using the services. Increased annual revenue indicates the availability of capital, which can be used to increase production, expand operations, hire more employees, and improve process efficiency.

Flexible Bill Financing

Providing customers with manageable credit terms is considered practical for several different reasons. Many businesses currently offer these terms as it allows a business owner to build better relationships with their clients while helping the business handle payments efficiently over time. Invoice financing is a simple process of freeing cash from a personal invoice to customers.

Instead of waiting several months for the invoice to be paid, the owner can simply sell it to an invoice financer who will loan their invoice up to 90% immediately. With this process, cash will continue to flow through the business, which enables the owner to pay their bill while taking significant growth steps.

Business Development Loans

When the opportunity presents itself, a businessperson will need credit or capital to grow their investment further. Whether new technology is required for efficient processing and performance or the owner is seeking larger contracts, they will need additional funding for investment. Growth-related loans are easily accessed with little difficulty. While these loans may seem like a modest option, they are diverse, and a business can use them at different stages of growth for different needs. Utilizing a business development loan depends on the business owner knowing how much funding is needed and what loan requirements are possible.   

If a businessperson’s growth plan contains obtaining new equipment or profitable property, there are several options to receive funding.

Asset Economics

Proper machinery and equipment are essential to business production and growth. However, obtaining the necessary cash or capital to invest in these assets can take time and effort. Several finance options allow people to attain the machinery they require or need for development by leasing new equipment or selling outdated machinery and purchasing state-of-the-art equipment.

Equity Speculation

Business owners often need help with whether to use their equity or continue to let it grow. To avoid using equity, third parties can obtain investments to enhance or facilitate growth. Engaging with these third parties could also lead to selling a part of the business or offering possible future profits.
Similarly, many business owners must obtain external investments to achieve their business goals. As such, offering an equity share will allow the business owner to gain additional financing sources while maintaining sufficient control.

Growth Through Achievement

The best advice a person can give is “Use the finance available for mergers, acquisitions, and takeovers to grow the business.” If funds are reserved for expansion, it is best to use them to stabilize business operations. Another option is to refinance the current assets to utilize the cash that is tied up. Additionally, other financing options are available, including secured term loans.  

Protected Commercial Loans

Protected marketable loans allow a business owner to access business credits over an extensive period based on tangible assets like properties or equipment. Protected commercial loans are typically used for managing buyouts or re-organizing struggling businesses.

Conclusion 

In conclusion, adequate business financing is pivotal for growth. Strategies like flexible bill financing, business development loans, asset options, and protected commercial loans can unlock opportunities and drive sustained expansion. Smart financial choices empower businesses to flourish and achieve long-term success.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Financial dashboards for companies are significant for the evaluation of business operations. It is a management tool that helps in tracking all your relevant finances. More than ever, accountants and bookkeepers stay under severe pressure to deliver rapid insights and transparent and reliable financial reports while maintaining the company’s growth. A business can effortlessly acknowledge and measure every data accurately using a financial dashboard. They enable financial professionals to validate figures efficiently and sneak into financial details as much as possible, increasing functionality and productivity and leading to a sound economic environment. 

Moreover, the financial dashboard is pivotal for various business purposes, including supply chain management and customer relations. These dashboards bring the required products to the businesses in a timely. It also prevents the stock commodities and funds from being preoccupied with surplus. 

Undoubtedly, entrepreneurs stay preoccupied with regular business operations and often do not get enough time to review the finances themselves. For this purpose, multiple financial dashboards with colorful graphics are available. Also, they will not appoint any bookkeeper or accountant against money as financial dashboards are utterly virtual and affordable. 

Here is a list of three professional financial dashboards crafted for several company roles and levels to track its success. 

Cash Management Dashboard

The template of this financial dashboard provides an overview of the current cash flow of your business and the liquidity ratio while providing a versatile indication to improve the situations by optimizing processes and handling accounts payable and receivables. It summarizes the quick ratio, current ratio, outstanding debts, and cash balance.

Primarily, this dashboard examines your quick ratio and the current ratio. The current balance refers to the liquidity of a business and its ability to write off short-term liabilities. On the contrary, the quick ratio provides a more conservative view of liquidity. It does not include equipment and other liquid assets with short-term assets to meet the liabilities. The balances in these cash management dashboards are influenced by accounts payable and accounts receivable turnover, which measures the speed of clearing the debts and how rapidly you collect the payments owed. 

Financial KPI Dashboard

This financial dashboard provides a general overview of the most highlighted KPIs you can implement for any business or financial institution requiring stable, initiative-taking management and operational procedures. With the help of financial analytic software, this dashboard will answer crucial queries related to liquidity, budgeting, invoicing, and the comprehensive financial stability of a firm. 

Firstly, the financial KPI dashboard begins reviewing your current working capital while focusing on your existing assets and liabilities. This information provides a frequent conclusion if your company is operationally efficient, liquid, and financially stable in the short run. On the contrary, if the current assets do not exceed the liabilities, the risk of bankruptcy will increase.

Profit and Loss Dashboard

This financial dashboard provides an easy-to-understand review of the income statement from net revenue to profit, improved by relevant performance ratios. The P&L dashboard revolves around four significant economic indicators: gross profit margin, operating profit margin, OPEX ratio, and net profit margin. 

Besides the profit and loss statement, this dashboard represents vital performance barometers that evaluate your company’s health and the profitability of its operations. When comparing these KPIs, you must consider that the figures might alter significantly across various industries. However, it is a standard way of describing a company’s financial performance so you can make the comparisons reliably and equitably. With the help of this dashboard’s template, you will have all the required information at your fingertips for practical monitoring, which also leads you toward wise decision-making. 

Why Do We Need Financial Dashboards? 

Financial dashboards provide a detailed balance sheet and income statement overview, including net profit, revenue, and other performance ratios. Each dashboard shows four critical economic indicators: net profit margin, operating profit, OPEX ratio, and gross profit margin. 

The revenue helps calculate the selling price by determining the total cost of goods sold without involving details for other taxes and expenditures.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Nearly all individuals who want to be an entrepreneur have considered investing in real estate at one time or another. If you are like-minded and considering investing in real estate, first and foremost, understand that there is no perfect time to begin your venture. Real estate investment will never be ideal because there will be problems and roadblocks each time. Even the most profitable investors encounter their share of problems, but their determination and continued hard work help them succeed. For people who are looking to begin investing in real estate, below are a few tips that will help them get things underway:

Join an Investment Club

For a beginner, networking can be overwhelming. According to experts, joining a networking group can benefit a new investor. It is no secret that if a person wants to learn, they must surround themselves with people who have been in that business for years. For a person who wants to learn the dos and don’ts of investing in real estate, joining a networking group is the first step.

Listening to experts will enhance understanding and realistic expectations. The time and the knowledge a person will obtain through these meetings will help them determine the nature of the industry and if they can meet a possible business partner.

Understand Data and Costs

A person who wants to start investing in real estate needs to be able to handle and comprehend data to understand every transaction fully. Closing Costs are the first thing a person needs to learn before entering the real estate business. Even for people with prior experience, there are many factors regarding cost that they need to understand before they start to invest in real estate fully. Many new investors start with a small amount of capital, so they need to be able to utilize these funds appropriately. Having an excellent applicable knowledge of costs, fees, and data will only benefit them as they begin to invest.

Pick a Market

New investors often have a clear vision of the kind of property they want to invest in; however, they may not always be sure about the location. An investor must narrow down the market before they start investing. It requires gathering relevant research regarding the market they want to invest in, knowing the prices and taxes, and paying attention to developing areas and local businesses.
After choosing a market, visiting the neighborhood and surrounding commercial area before investing is essential. Knowing every detail about a particular market will enable an investor to make better offers and sound business decisions.

Assemble a Team

Most people need to realize that real estate is a team business. Even agents who work alone need a support staff at times. One of the most important initial steps of investing in real estate is to get in touch with an agent. Find a reliable real estate agent and reach out to them regarding your concerns and questions because they will know more about the market in a prospective area than almost anyone. Also, a great way to find a reliable contractor is to look in a networking group or ask a real estate agent. It is essential to develop a team where each person specializes in an area of real estate so you can leverage their expertise and maximize your investment.

According to experts, a person should first start by making small offers. Have a reliable team in place and consult with them before making an offer. In real estate, some risk is involved, but make sure that Rick is worth the profit. Fortunately, a person considering real estate investment does not readily need money or even a license to get started. Anyone willing to follow the steps mentioned above and learn can invest in real estate and be successful.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

When a person, group of people, or company decides to begin a new startup or expand an existing business, they are usually faced with several problems that they must immediately solve. It is not enough to have a good idea and demonstrate its feasibility; a person must be able to implement it.

Therefore, financing becomes a fundamental issue for these new ideas. Unfortunately, people who decide to undertake a new venture face numerous problems when obtaining sources of financing, including:   

1. Inaccurate estimates or financial plans for realistic project costs.
2. Naiveté of current market possibilities and limitations.
3. Inherent investment risks that generate uncertainty in front of third parties.
4. Scarce resources are initially available.

Challenges in Securing Financing for Startups and Business Expansion

An entrepreneur’s options when financing a startup project may be limited, so it is essential to know what options are available and clearly define the financial needs of the prospective business. It is necessary for an accurate and realistic budget to be created and reflected in the volume of the investment so as to absorb any unexpected costs.

Similarly, the business plan must detail those financial needs to start the project. Currently, there is no single financing model as the size of the company, the sector, and even the country can impact any company’s financing structure, causing the investment amount to vary. In general, there are two financing options: personal resources and third-party resources.

Navigating Financing Options

Personal resources or partner contributions are scarce, and the cost of maintaining them is high. It is a common misunderstanding that personal finances are the best option, but that can be a mistake. Depleting private equity or investing personal funds can significantly impact one’s livelihood, and if the venture fails, the entrepreneur could be in dire financial stress.

Exploring Third-Party Resources

Conversely, third-party resources have limitations, and the periodic interest payment reflects the cost of utilizing them. Loans are the most common products, but other financial tools, such as leasing, should also be considered to finance fixed assets and production.

Another funding source is subsidies, a type of financial aid whose access can be cumbersome because of the requirements necessary to obtain them. Subsidies should be utilized as a secondary financing option, and a startup or expansion should not be considered if it depends solely on this type of aid.

Venture Capital and Global Trends

If personal resources do not allow an entrepreneur to implement a structure of healthy financing, it may be necessary to consider introducing new partners, either industrial (or sector) or financial. Financial partners can vary, although it is worth highlighting that venture capital companies are developing in major economic powers, including Spain, compared to the rest of the European Union, especially the United States.
Venture capitalist firms specialize in investing capital in companies during a specified, limited time and with a minority participation. They act as a partner in rights and obligations since they directly participate in the company’s share capital and, therefore, can contribute economic resources, experience, and knowledge to the company’s management. Generally, before investment, these firms will ensure there is an option to abandon the project as they will seek to maximize their profitability and protect any remaining resources.

Strategic Capital Planning

Finally, it is essential to emphasize the need for an entrepreneur or company to understand and define investment needs and capital planning clearly. They must consider deadlines, obtain excess capital to avoid unexpected costs and study the market for potential economic fluctuations. When these factors are carefully considered and monitored, a balanced financial investment structure can be developed to obtain financing through personal or third-party resources.  

Conclusion

Launching a startup or expanding a business necessitates careful financial planning and strategic decision-making. Challenges in securing financing, such as inaccurate estimates and investment risks, highlight the need to navigate available options wisely.

Successful financing demands a solid understanding of options and a proactive, adaptable approach to the dynamic entrepreneurial landscape

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

If an entrepreneur wants to set up a restaurant, they first need to evaluate the potential success of the business. It is unwise to begin a restaurant venture without carefully considering its success, and most companies fail because they do not validate the idea’s viability. As such, an entrepreneur must consider the hospitality industry’s characteristics and, above all, the investment necessary to finance the business.

Buy or Rent the Space?

Creating a business plan at least a year in advance will help you establish the items needed to start the process and eventually break even. The purchase or rental of the premises will be the initial expense and require the most significant investment. A well-known tax advisor remembers that “in case of acquiring the premises, the investment will rise considerably, depending on the area and size.”

According to this source, in case of having sufficient resources, it is preferable to acquire the premises than to pay an income. On the other hand, another legal adviser encourages renting “so as not to run out of treasury that allows other expenses to be met.” In short, the decision will depend on the possibilities and the risks you are willing to take. If you decide to rent, evaluate renovations that you will have to make by asking for several quotes and determine if it allows you to develop the idea you had in mind.

Necessary Purchases

Another vital expense to face is the purchase of machinery. You will need industrial items, such as cold rooms, a kitchen, a freezer, an oven, kitchen utensils, a coffee maker, a register, etc.

In addition to the referrals in the business plan, you must consider other expenses, such as the constitution of the company and agency, acquisition of furniture, purchase of stock, personnel and employment expenses, and all taxes. These factors will impact income and the time it takes to profit. Therefore, to the initial investment, you should add at least 20% to expenses to cover unforeseen events.

Also consider

Once expenses are determined, you must estimate the benefits you will obtain to calculate business profitability. A restaurant is profitable if it earns an income that doubles the expense invested in the products necessary for cooking.
To calculate the required provisions, you must determine the number of tables in the room, the food shifts, if you will offer restaurant or cafeteria service, the number of hours they have open the business, etc.

The Provisions

The daily supply of products is essential, so you should see what is consumed daily to replace it. However, some products can be kept in stock because they are not perishable. Some experts recommend purchasing bulk stock of products used the most, such as alcoholic beverages, for cheaper prices.

The Space

Industry professionals advise that the dimensions of the premises should be between 175 and 200 square feet. However, smaller premises have been licensed, and new business models have emerged that make it possible to reduce space. Traditionally, to make the initial investment profitable, a person needs at least five tables of four people each, doubling at lunch and dinner.

Business Features

Opening a restaurant that only offers meals or a mixed business cafeteria-restaurant will depend on the target audience and the restaurant’s location. Experts advise taking full advantage of business opportunities and diversifying services by extending hours of operation so it will be easier to cover fixed expenses.
On the contrary, if you intend to create a high-class restaurant, it is essential to cater to your clientele. There are no golden rules to succeed in the restaurant business because success largely depends on what you offer and to whom you submit it.

The Menu

Industry professionals explain that you can establish a menu price that increases the item’s margin once subtracting expenses. However, do not lose sight of competition so as not to deter potential customers. It would be a mistake to charge eleven dollars for an item if comparable items at other local restaurants rarely exceed seven dollars. The best option is a good value for the product you offer

Advanced Knowledge

If you lack accounting knowledge, entrusting these tasks to a financial professional or administrative expert is best. It is especially advisable if the restaurant is franchised since its accounting is more complex.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.