Business Life Cycle
Company is stable and profitable.
Success
If the income is $1,000 and the cost of goods sold is $500, the gross profit would be:
$500
Calculated by subtracting the cost of goods sold from the income.
Gross Profit
The business introduces itself to the market and attempts to catch the attention of potential customers.
Existence
If the current revenue for one month is $10,000, the run rate would be:
$12,000
Calculated by dividing the total monthly cost by the selling price.
Break-Even Point
Sharon owns a law firm. She has recently begun earning money, and the firm's finances are doing well.
If the Marketing Expense is $10,000 and the Sales Expense is $5,000, and there were 100 new customers acquired during the period, the CAC would be
$150
Calculated by multiplying the gross profit by the tax rate
Income Tax Expense
Mike is the owner of a doggy daycare and grooming business. The business is economically healthy, and he is looking for ways to finance future growth.
Take-off
If there were 500 customers at the beginning of the period, 100 new acquired customers, and 400 customers at the end of the period, the CRC would be
60%
Calculated by dividing the net profit by the cost of investment and multiplying it by 100
ROI
Dylan owns a small grocery store. The store has not been receiving a log of business during the last few months and has been making a low profit. Dylan has a meeting scheduled to discuss these issues with other employees of the grocery store.
Pivot or Persist
If the value of investment is $10,000, the cost of investment is $8,000, and the net profit is $2,000, the ROI would be
25%
Calculated by subtracting the total costs from the total cash.
Ending Cash Balance