Guides for small business owners
Plain answers to the questions owners ask about cash, prices, sales, customers and their own time. Each guide answers one question and works it through on an example.
Growth
- Should I raise my prices?
How price, accepted quotes and the cost of delivering work change the result together.
- How do I calculate my sales conversion rate?
Separate the results of one enquiry group, wins during a month and opportunities still open.
- How do I calculate what a new customer really costs?
Use the right group when comparing the cost of enquiries, qualified opportunities and new customers.
- How do I calculate churn when new customers keep arriving?
Distinguish retained customers, new arrivals, lost recurring fees and a purchase that may simply be late.
Finance
- How many sales do I need to break even?
How the amount left from each sale adds up to cover the costs of keeping the business open.
- Budget vs actual: does spending above plan mean money was wasted?
How a plan, a dated expectation and the recorded result answer different questions.
- How much of my bank balance is really free to spend?
How pending payments, known commitments and a chosen reserve change what today's balance can support.
Operations
- How do I calculate a reorder point before stock runs out?
Stock must cover the wait between placing an order and receiving usable supplies.
People
- How much of my time does delegating really give back?
Keep teaching, review and the recipient's workload visible when estimating the time a change releases.
Strategy
- Which of my products or services leaves the most money per scarce hour?
Compare what two offers leave after variable costs with the shared capacity they use.