When starting a business, choosing the right structure is crucial. One of the most popular options is an LLP (Limited Liability Partnership). But what exactly does LLP Full Form mean ? In simple terms, an LLP is a hybrid business model that combines the flexibility of a traditional partnership with the limited liability of a […]
A loss leader pricing strategy, a term common in marketing, refers to an aggressive pricing strategy in which a store prices its goods below cost to stimulate sales of other, profitable goods. With such a pricing strategy, a business is selling its goods at a loss to lure customer traffic away from competitors. In contrast to predatory
A break-even analysis is a financial tool which helps a company to determine the stage at which the company, or a new service or a product, will be profitable. In other words, it is a financial calculation for determining the number of products or services a company should sell or provide to cover its costs
Contribution Margin 2 (CM2) is a financial metric used to assess a company’s profitability after accounting for variable costs and direct fixed costs associated with production. It helps businesses understand how much revenue remains to cover indirect fixed costs and generate profit. CM1, CM2 and CM3. Net revenue = gross revenue less (or net of)
Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy. It helps a business understand its target market by gathering and analyzing data. Market research is the process of evaluating the viability of a new service or product through research conducted directly with
Global System for Mobile Communications, or GSMA, is a global organization that represents the interests of mobile operators worldwide. It was founded in 1984 as Groupe Spéciale Mobile Association. The main goal of GSMA is to promote innovation and cooperation in the mobile industry. GSM (Global System for Mobile Communications) is a digital mobile network
A Proof of concept (POC) is the process of gathering evidence to support the feasibility of a project. Project managers perform a POC in the early stages of development before committing too much time and resources to a project. The purpose of a proof of concept is to demonstrate project viability to product teams, clients,
Revenue based financing (RBF), or royalty-based financing, is a way for businesses to raise capital without putting equity or collateral on the line. What Is Revenue-Based Financing? Revenue-based financing, also known as royalty-based financing, is a method of raising capital for a business from investors who receive a percentage of the enterprise’s ongoing gross revenues in
A write-off is a business accounting expense that accounts for unreceived payments or losses. A write-off reduces taxable income on a company’s income statement. What is a Write-Off? In accounting, a write-off reduces the value of an asset on the balance sheet while debiting a liabilities or expense account. Businesses use write-offs to account for losses such as unpaid loans, unrecoverable receivables, or unusable
A syndicate is an organized group of just about anything – corporations, other entities, or even individuals. The group is organized independently by the entities that form it. A syndicate’s primary notable quality is that the groups within it work together to conduct some type of business in order to pursue and promote their collective interests.