by Peter Dragone | Feb 17, 2023 | Peter Dragone Blog, Planning
As my previous blog suggested, gross margin is a critical profitability metric. Yet, it should not be looked at in isolation. A 50% gross margin on an ecommerce product may seem adequate, but it is only part of the picture. What if your selling expenses are high? You...
by Peter Dragone | Feb 9, 2023 | Peter Dragone Blog, Planning
The importance of gross profits cannot be overstated. If you’re contemplating a fundraising round or an exit event, then it’s a benchmark metric right up there with ARR (annual recurring revenue), Sales & Marketing Expense/Revenues, and EBIT. Investors want to...
by Peter Dragone | Feb 6, 2023 | Peter Dragone Blog, Planning
Investors as famous as Warren Buffet have dismissed profitability, as measured by EBITDA, as a suitable corporate financial metric, favoring “Owner’s Earnings” or Operating Cash Flow instead. Given Mr Buffet’s record of success, it is hard to argue the point . . . on...
by Peter Dragone | Jan 30, 2023 | Peter Dragone Blog, Planning
My last blog outlined several immediate strategies for improving cash flow. Yet, actively managing your working capital, changing sales terms, and cutting unnecessary expenses only goes so far. What more can be done if cash balances are still lagging? Consider taking...
by Peter Dragone | Jan 29, 2023 | Peter Dragone Blog, Planning
With April 15th on the horizon, managers’ thoughts often turn to cash flow. Or the lack thereof. For many, prior year planning never happened and a substantial tax bill looms. What can be done to improve cash flow? It’s a question we hear with some frequency. My...
