A solid business plan sets out your goals and steps you’re going to take to get there. You’ll need to be able to articulate this plan to investors, vendors and distributors in order to be taken seriously. You might have a great idea to start a new business, but it will be viable only when you have a business plan for it. The main purpose of a writing a business plan before … [Read more...] about 8 things you must do before writing a business plan
Finance
Financial Ratios: Ways to Measure the Performance of a Business
Financial Ratios are computed using data available from the company's financial statements. These financial ratios are a useful way of expressing relationships between financial accounts, one quantity in relation to another and between expected relationships from one point in time to another. For instance in the case of current ratio, we compare current assets to current … [Read more...] about Financial Ratios: Ways to Measure the Performance of a Business
Technical Analysis vs Fundamental Analysis – what is the difference?
We follow two methods for analysing a stock in order to find out a potential investment opportunity; fundamental, andtechnical Market participants are always debating which is better. Fundamental analysis focuses on a company's fundamental information about the strength, quality, soundness of the company and its products. The technical analysis is used to know how a … [Read more...] about Technical Analysis vs Fundamental Analysis – what is the difference?
Why you should buy stock of a company
Stocks are instruments or securities issued by a company in exchange of money to own a portion of the whole business. Stock is also known as equity share. Total capital invested in a company is divided into number of shares. Each share stands for unit of ownership in the company. If you bought 10% of the total number of shares issued by a company, then you are holding 10% … [Read more...] about Why you should buy stock of a company
How transactions are recorded in double-entry bookkeeping system
A transaction is an event which has a financial impact on the enterprise and requires recording. In other words, transactions typically involve an exchange of resources between the company and other parties. It acts as the raw materials for the financial accounting process. For instance, purchasing goods with cash or on credit is a transaction to be recorded in financial … [Read more...] about How transactions are recorded in double-entry bookkeeping system
What is limited recourse and non-recourse project financing
Project financing depends on cash flows of the business. Depending on the size of the project, owners may feel the need to borrow money for expansion or to start out fresh. As a traditional practice, sponsors or the project owner visit their local bank or financial institutions to take out a loan. In this article, we will discuss when a project will be considered as limited or … [Read more...] about What is limited recourse and non-recourse project financing
How dividend analysis of stocks can help you in investment
Investors invest their hard earned money in public company’s common stocks in exchange of a percentage of ownership, dividend and a piece of earnings. Dividend is not guaranteed on common stocks. Those companies that are substantially making profit issue dividend per share (DPS) of holding out of their net profits. If a company has declared DPS of Rs 1, then a shareholder … [Read more...] about How dividend analysis of stocks can help you in investment
How to write executive summary of the business plan
While writing a business plan for outsiders, you must write an executive summary and keep it to the beginning of your detailed business plan. This section capture the attention and excitement of both investors and potential business partners. Business plan is the most important document that you provide to bankers, lenders, financial institutions, large creditors or … [Read more...] about How to write executive summary of the business plan
When and Why you should write your business plan
You write a business plan for yourself to help you to think through your strategies, balance enthusiasm with facts by testing your assumptions, recognize your limitations and to clarify or concretize your thoughts. A business plan can also be written for seeking funds to help start a new startup and for expansion. It's considered as a blueprint of your success and is the … [Read more...] about When and Why you should write your business plan
How to calculate debt to equity ratio – D/E
The Debt-to-Equity (D/E) ratio is a key financial metric used to assess a company’s financial leverage and stability. It compares the liabilities of a company to its shareholders' equity, providing insights into the relative proportion of debt used to finance the company’s assets. Debt to equity ratio shows you how debt is tied up in the owner's equity. Please note, for this … [Read more...] about How to calculate debt to equity ratio – D/E