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Do you have a Competitive Advantage? Know what that is?

Creating Competitive Advantage Creating a competitive advantage is a goal of every business and can be accomplished using a myriad of tools and techniques. Competitive advantage is comprised of the differences that the business establishes between itself and its competitors which cause customers to prefer to do business. In an ideal world the competitive advantage …

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Business Model Basics: Hybrid Models

Hybrid Revenue Models Businesses which have components of both Recurring and Non-Recurring Revenue Models deal with products and services that are purchased on a frequent or regularly recurring basis, but, for which the customer is not contractually tied to the merchant. Examples of such businesses include: restaurants, grocery stores, dry cleaners, lawn care companies, dentists, …

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The Basics of Business Models: Hunt-Kill-Eat-Repeat

There are two distinctly different revenue models for business: Recurring and Non-Recurring. I like to think of this as Hunt-Kill-Eat-Repeat vs Plant-Grow-Reap-Repeat. In both cases you must repeat the steps that bring you success, however, one model provides a more predictable revenue stream than the other. Non-Recurring Revenue Models (Hunt-Kill-Eat-Repeat) Businesses that either deal with …

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The Basics of Business Models: Plant-Gro-Reap-Repeat

There are two distinctly different revenue models for business: Recurring and Non-Recurring. I like to think of this as Hunt-Kill-Eat-Repeat vs Plant-Grow-Reap-Repeat. In both cases you must repeat the steps that bring you success, however, one model provides a more predictable revenue stream than the other. Recurring Revenue Models (Plant-Grow-Reap-Repeat) Businesses that either deal with …

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Accounting Primer: Financial Statement Ratio Analysis

Ratio Analysis expresses the relationship between two selected accounting elements and is one technique used in conducting a financial analysis. When comparing your business’s ratios to those in for your industry standards, ask: Is there a difference between my company’s ratio and the industry average? Is it a significant difference? Is the difference good or …

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Accounting Primer: Different Income Statements for Different Business Types

Different Income Statements for Different Business Types Different types of businesses need different types of Income Statements. Here are some of the different types of business and the differences that you would expect to see in their Income Statements based on the differences in their businesses: Service Businesses: These businesses will have a section called …

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Accounting Primer: Non Current Liabilities

Non-current Liabilities Non-current liabilities are those obligations that will be payable in the following year. There are three types of non-current liabilities, only two of which are listed on the balance sheet: Non-current portion of Long-Term Debt (LTD) Notes Payable to Officers, Shareholders, or Owners Contingent Liabilities Non-current portion of long-term debt is the principal …

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