As an entrepreneur sometimes you are required to be everything in your business especially when starting out. Financial management is always a challenge when working without an accountant. Ratio analysis is a tool that allow you to trend in your performance as well as compare how you are doing financially compared to others in your industry.
Here are 15 Financial Ratios that you can use to manage your business when starting up
Gross Profit/Sales = Gross Profit Margin
Operating Profit/Sales = Operating Profit margin
Net Profit/ Sales = Net Profit Margin
Net profit/ Owner’s Equity = Return on Equity
Net Profit/Total Asset = Return on Assets
Current Assets/Current Liabilities = Current Ratio
(Current Asset- Inventory)/ Current Liabilities = Quick Ratio
Working Capital/Sales = Working Capital Ratio
(Account Receivables*365)/ Sales = Account Receivables Days
(Inventory*365)/Cost of Goods Sold = Inventory Days
(Accounts Payable*365)/Purchases = Account Payable Days
Sales/Total Asset = Sales to asset
Total Liability/Owner’s Equity = Debt to Equity
Total Liabilities/Total Asset = Debt Ratio
(Net Income+depreciation)/Current Maturities of |Long Term Debt = Debt Coverage Ratio
Every business, especially small and medium size businesses should have a fully functional Facebook page. However having a page is not just a simple as it seems every Facebook Page needs to be optimized for success especially when looking to undergo serious Facebook Marketing. The steps to optimizing your Facebook page are as follows:
· Understand the difference between your Profile and your Page- Your profile is your personal space on Facebook where you add your friends and you can interact with them, you can only have 5000 friends. A Page on the other hand is where people can click like and become fans of your business and there are no limits to these, you must have a page to run Facebook ads, you can’t run ads on a Profile Page
· Link your Facebook page and your Facebook Profile- In the about section of your Profile, you can select places you have worked. You can click edit your work and you’re able to add your work, in places, you select your Facebook Business page and enter your position. When someone goes on your page and they hover over your work, they can be taken to your Facebook Business page.
· Have a Well-designed Cover Photo- Every business should have a cover photo and use your cover photo to tell others who you are and what you’re about. You can show sample of your products or even promotions you are running at the time. The ideal specs for your cover photo should be 851*315 pixels. Your profile photo will cover a part of your cover photo, the lower left corner so this part needs to be kept clear to avoid covering any information.
· Name your Page- This is important, your Page name should be your business name, not your personal name and this should tell your clients and potential clients who you are.
· Enter information in about section- Your about section has different categories, and you need to full out these categories. The about section is indexed by Google so you will want to use Keywords in here. You can add certain links to different pages and websites you have in this about section as well. However you need to spend enough time and flesh out your about section.
· Ensure your Private Messaging added- This will allow people to contact you, if you have messaging turned off, then go to settings and general, click messages edit and then click turn on. You need to ensure that you constantly check this section.
Once you have your page optimized then you are ready to start generating traffic to it, also with a highly optimized page then you can now start engaging in Facebook Marketing.
In the information age it is becoming much easier for Caribbean Entrepreneurs to start and run businesses even though they never had a formal business education or are unable to finance certain specialized business courses. Below is a list of the 10 best online resources that Caribbean Entrepreneurs Should be using now.
- Fiverr.com- fiverr is a resource where Caribbean Entrepreneurs can get anything done for 5 dollars. One might think, since its 5 dollars the work would be of poor quality, and depending on what you want done it may be of poor quality. You wouldn’t try to get a quality website built for 5 dollars. However for gigs such as graphic designs, articles, videos, desktop publishing, if you need a virtual assistant among many other services. Every Caribbean Entrepreneur should be checking Fiverr now to get things done.
- Evernote- Evernote allows you to manage your life and your business in an efficient manner. It allows you to capture data whether on your mobile device, computer or tablets and help you remember projects you’re working on in your business.
Do you know of any other online tools that Caribbean Entrepreneurs should be using right now?
Today that Real Kimron Corion features, UNIK Fashion in Grenada. UNIK is a Shoe Store operating at Grenville Grenada. The Entrepreneur behind UNIK is Mrs. Bridget Burke who has been in Entrepreneurship for a number of years and has experienced a number of successes as an Entrepreneur. The business previously sold clothing; however management revamped the business to selling predominantly Shoes.
Mrs. Burke believes that in order to help alleviate some of the economic problems being faced today, there need to be a greater emphasis placed on Entrepreneurship. Her advice for young people especially young and aspiring entrepreneurs is to Pursue their dreams and don’t let fear keep them back.
Individuals can visit UNIK store on Jubilee Street Grenville St Andrew to check out their different array of products.