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Will SMBs Thrive or Fail in this Inflation-Threatened Holiday Season? Here’s What Reports Show

Zenefits

The holiday season — usually retailers’ most profitable time of the year — could be financially troublesome for businesses in 2022. is in, or is about to face, an economic downturn that could financially cripple some companies, especially small businesses (SMBs). Based on various reports, the U.S. The quarterly Metlife and U.S.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business. What if revenue was higher?

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A Refresher on Debt-to-Equity Ratio

Harvard Business Review

Both of these numbers come from your company’s balance sheet. If your small business owes $2,736 to debtors and has $2,457 in shareholder equity, the debt-to-equity ratio is: (Note that the ratio isn’t usually expressed as a percentage.). .” Here’s how the formula looks: Consider an example.

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A Refresher on Current Ratio

Harvard Business Review

One of the biggest fears of a small business owner is running out of cash. But large businesses in financial trouble face the same risk. To know whether a company is truly on the cusp of hitting a $0 balance in their accounts, you can’t simply look at the income statement. ” But the ratio can also be too high.

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Enabling the Natural Act of Entrepreneurship

Harvard Business Review

Scale-up means growth, and growth means jobs, wealth, and tax revenues. In a recent post on HBR.org , I called attention to the fact that we entrepreneurship promoters are too focused on start-up, and need to re-balance the dialog to support scale-up as well. Even better. Governments and shareholders should have different motivations.

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Corporations Weren’t Designed to Run on Code

Harvard Business Review

The strategy works, temporarily putting more cash on the positive side of the balance sheet. If you’re the unhappy victim of a plant closing, the resident of an abandoned community, or the owner of an undercut small business, you are an unfortunate but necessary sacrifice to business innovation and free-market competition.

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