terms
capital
financial assets, such cash
operating expenses
the costs of running a business, separate from the cost of producing product and capital investments.
What are the three sharks of change?
1. customers
2. competition
3. technology
5 step problem solving methodology (in order)
1. identify/ define the problem
2. research/ analyze/ strategize
3. implement/ create/solution
4. test / validate
5. deploy
threats to cp and rifton
cp: no children
rifton: better health care and fewer disabled people
cash flow
the total amount of money being transferred into and out of a business. In common usage, the term usally refers to net cash
payment terms
the agreement between a seller and buyer about when payments should be made and how.
terms specify the period allowed to a buyer to pay off the amount due
what is the definition of business
An activity that creates and delivers something of value at a price that people are willing to pay that is higher than it's cost
what are the 6 drivers of revenue
size of market: niche or large
competition:
Maturity of market
pricing potential
uniqueness of value offer
upsell pot.
four parts of a business
a) value offering
b) customers
c) infastructure
d) finance
gross profit
the profit a company makes after subtracting the costs associated with making a product or service.
payables
money owed to creditors, lenders, employees, or government.
economies of scale vs. economies of scope
scale: the cost advantage that arises with increased output of a product...the more you make the cheaper it becomes
scope: the coast advantage that arises when the average total cost of production decreases as a result of increasing the number of different goods produced.... different types without changing their product
3 business expensives
1. COGS
2. operating expensive
3. capital expenses
what does it mean to build a brand
expanding on your products so you keep customers and keep making revenue
Cost of Goods
COGS: the direct material and labor costs attributable to the production
receivables
money owed to a business from sales made but not yet paid by customers
Core Functions vs. support functions
Core: Design, Manufacturing, sales/marketing
support: logistics, marketing, information technology, human resources, purchasing, quality assurance accounting, legal/ regulatory.
What are the (6 or 7) drivers for cost
1. initial investment
2. ongoing investment
3. material costs
4. logistics
5. customer acquisition
6. available supply lines
7. regulatory issues
childcare trilema
quality
affordability
availability
net profit
the total amount a company has earned in a given time period, by subtracting total expenses from total revenue. Can also be calculated by subtracting operating expenses from gross profit
sales
the activity of creating transcreations where a buyer receives goods or services from a seller in exchange for money
how to not define a problem?
don't define the problem in terms of a solution
every business needs
start-up capital
1. capitals money come from investors
2. finite (enough to begin with)
3. last long enough until making own
4. maintain gross profit margins
break even point
the point in time when revenue equals costs