Chapter 21. (Almost) Ten Secret Business Formulas
In This Chapter
Finding the most expensive money you can borrow in two ways
Figuring out how to break even
Finding out whether you're growing too fast
Using two different formulas to answer those what-if scenarios
Letting Isaac Newton decide your ordering schedule
Following the Rule of 72
I have some good news and some bad news. The good news is that you can use some powerful formulas to better your chances of business success and increase your profits. No, I'm not joking. These formulas do exist. You can and should use them. And in the pages that follow, I explain the formulas and how to use them.
Now for the bad news: To use these formulas, you need to feel comfortable with a bit of arithmetic. You don't need to be a serious mathematician or anything, but you do need to feel comfortable using percentages and calculators. By the way, you can use the standard Windows Calculator, available from within QuickBooks by choosing the Edit
Even if you're not particularly fond of (or all that good at) math, I want to encourage you to skim this chapter. You can pick up some weird insights into the world of finance.
The First "Most Expensive Money You Can Borrow" Formula
Here's something you may not know: The most expensive money that you can borrow is from vendors who offer cash or early payment discounts that you don't take. For example, perhaps your ...