Operating leverage: what happens to profit margins if revenues fall. And if it grows up?
Usually business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company earned, and profit shows how much is left after deducting expenses. Most…

Continue reading →

Preferential loans for legal entities and individual entrepreneurs
The state provides loans to businesses for resuming operations and for expenses related to the borrower's business activities. The funds issued are not earmarked; they can be used not only…

Continue reading →

Building material for the Group of Companies
Medium business cannot successfully exist within a single legal entity. A group of subjects is always required, otherwise it is impossible to resolve individual issues of property, management and other…

Continue reading →

What is microbusiness
Starting your own microbusiness is much easier than it sounds. Whether you are making jewelry by hand, printing something for sale or sewing, half the battle is already done. It…

...

7 financial risks in business that can be worth millions
There are always risks in business, and there are many of them. Some cannot be influenced, for example, if the summer in the region turned out to be dry, agribusiness…

...

buys paint

Transport services in the Group of Companies

In the issues of our mailing list, we have repeatedly written about the separation of the company – Custodian of Assets in order to protect the significant property of the group of companies; on the separation of a manufacturing company, etc. Today we will talk about the proper organization of the “transport” function in a group of companies, namely, what opportunities for tax and property security can be provided by building this function in the light of our concept of a Secure Business Platform®.

Own significant property, which in the overwhelming majority is also transport, often belongs to a separate entity of the group, which provides maximum protection against the risks associated with entrepreneurial activity (assets custodian). The reasons for this are obvious and do not require separate explanations. Continue reading

Not a single share … And again about the motivation of top managers

Increasingly, we are faced with a request from business founders: we want to give top managers shares so that they receive a percentage of profits and are associated with the company with long-term interests.

Thanks to world practice, Google and Facebook for illustrative examples of such motivation.

However, often in such a request there is an illusion … an illusion of hopelessness for the very top manager whom we want to motivate. Continue reading

Turnover or why fast business equals rich business

Business is a money-making box. You put capital in there, scroll and get some kind of profit at the exit. Accordingly, the more often you spin capital in a business box, the more profit you get. This is the essence of turnover in a nutshell.

But let’s understand not in a nutshell, but in a normal way. In this article, what is turnover, how it affects your business, and how to manage it wisely to keep your money making box working as it should. Continue reading

7 financial risks in business that can be worth millions
There are always risks in business, and there are many of them. Some cannot be influenced, for example, if the summer in the region turned out to be dry, agribusiness…

...

Direct and indirect costs or why it is impossible to count net profit by line of business
In companies with several divisions and branches, it is difficult to calculate the profit of each. You can subtract all expenses from all income and get some value. But this…

...

8 reasons why a business is losing money out of the blue
When we start working with financial accounting in companies, the first thing we do is collect basic reports. Thus, we digitize the company. And thanks to this digitization, it is…

...