Person chopping vegetables for a meal prep kit

Article Summary: Meal prep businesses provide convenient and delicious meals to customers near and far. However, despite the infinite combinations of cuisine styles and meal kits on which you can base your meal prep business, there are significant startup costs involved. By the end of this article, you’ll understand what it takes to start your […]

Hand holding a smartphone with the Uber logo in front of a steering wheel

Article Summary: Prospective or currently active Uber and Lyft drivers sometimes need help financing their businesses. A driver can apply for traditional loans, such as car loans and personal loans, to finance a rideshare business. Additionally, rideshare drivers can finance a rideshare business by applying for business loans through entities such as the SBA or […]

Front view of car going through tunnel car wash

Article Summary: Owning a car wash business can be financially and personally rewarding. There are several types of car washes to choose from, ranging from self-service to full-service. Car wash business owners need to set up a solid business foundation and choose a great location; then, they can start operating a profitable car washing business […]

Businesswoman standing in front of shop

Article Summary: Unlike corporations and LLCs, sole proprietorships do not offer protection for a business owner’s personal assets. The good news is sole proprietors can protect their personal and business assets through various forms of business insurance. Nevertheless, liability is certainly a factor to consider when choosing what type of business insurance might be most […]

Business man using a calculate to calculate the marginal cost for his company

Article Summary: The marginal cost of production describes how much more it costs to produce additional units of goods or services. You can calculate marginal cost by dividing the change in production costs by the change in quantity produced. Among other things, this can help companies to optimize their production levels. A business can usually […]

Scrabble pieces spelling out manage your assets

Article Summary: A company’s assets fall into two categories: intangible and tangible assets. Intangible assets are objects of monetary value that you cannot touch, while tangible assets are physical objects used by the organization. While both are important to the success of a business, intangible assets tend to bring more revenue over time than tangible […]

business calculator and paper with business information and written notes, pen

What Does FIFO Stand For?

Article Summary: FIFO is the most commonly used of the three inventory management methods. FIFO — which stands for first in, first out — assumes that the oldest inventory is sold before the newer inventory. This inventory management method helps determine how much a business spent on goods, information important for completing tax returns, and […]

golden sun, orange sky, and parachute over water

Article Summary: Ensuring a company executive experiences a soft landing when dropped from a company, a “golden parachute” might better be called a “golden severance package.” Top executives can receive a golden parachute package when their company gets acquired and they are consequently terminated. Golden parachutes guarantee executives are well compensated when they must be […]

Two businesspeople shaking hands with a smiling woman in a business suit in the background

Article Summary: Payment-in-kind (PIK) interest is an alternative to cash payments in which goods or services are used as debt instruments instead. Businesses often use PIK loans to preserve their cash flow when borrowing money. Loans that use payment-in-kind interest also give businesses flexibility by allowing them to adapt that PIK interest using partial cash […]

Smiling banker in business attire with documents

What is a Leveraged Loan?

Article Summary A leveraged loan is typically used by companies to finance their acquisition or expansion projects. These loans are often structured in a way that allows the borrowing company to gain access to more funds than they could through traditional lending sources. For this reason, leveraged loans can be an attractive financing option for […]

Two hands shaking with a smiling woman in a business suit in the background

Article Summary A chief executive officer and a company president are considered two of the most important roles in corporate governance. A CEO oversees the company’s strategic goals and reports to the board of directors, while the president is responsible for more of the hands-on implementation of corporate goals into the workforce. In some cases, […]

Article Summary The interest coverage ratio is a formula used to measure a company’s ability to cover its existing debts. The interest coverage ratio measures the time frame it will take a company to pay off its debts, should its existing revenue stay the same. The ratio is used by a variety of lenders and […]

Two people at opposite sides of a table reviewing financial statements

Article Summary A cov-lite loan is a type of loan that has weaker financial covenants than those found in traditional loans. This makes them more enticing to potential borrowers, as they come with fewer strings attached. But, it’s important to note that cov-lite loans are not without risk and should be entered into only after […]

overseas shipping containers being offloaded from ship in a Baltimore, Maryland, U.S.A. port

Article Summary: Quotas are limits on the importation of goods from foreign countries. Established by the government, a quota sets a ceiling on how much of any good may be imported from any single nation, based on either the physical amount or the monetary value of that good to protect domestic producers of the same […]

Businesswoman standing in front of shop

What Does ISO Mean?

Article Summary: ISO stands for the International Organization for Standardization, which is an independent international organization that develops various sets of standards to ensure quality, safety, and efficiency. ISO certification ensures that a product, service, or system meets all the organization’s standards of quality assurance. Being ISO certified can help a business acquire new customers, […]

Two hands shaking with a smiling woman in a business suit in the background

Article Summary: A bear hug is a business term used by investors to describe the process of paying more than market value for another company’s share price. Although it sounds positive, a bear hug is often seen as a hostile takeover strategy with several negative implications. Though a bear hug between friends may be a […]

Woman accepting a credit card from a customer

What is a Vendor?

Article Summary: Vendors are any individual or company that sells goods or services to another individual, business, or government. Vendors are crucial to a business’s supply chain and overall success. Maintenance providers, retailers, and small business owners are all examples of vendors. An important part of running a business is vendors. But vendors are not […]

Two coworkers reviewing a binder of pie charts and revenue data

Article Summary: Annual contract value (ACV) calculates the revenue generated from a single contract normalized over a year. Together with annual recurring revenue (ARR), analysts are able to determine the financial health of a company, as well as its revenue growth prospects. This metric is typically associated with subscription-based services in which the client is […]

image of the sort of handwritten accounting records few people use these days

Article Summary A business preparing an income statement has two reporting options available: a single-step income statement or a multi-step income statement. Both of these income statements report on the business’s profits, revenue, and expenses during a given period of time. Whether a business chooses to file a single-step income statement or a multi-step income […]

Two coworkers reviewing a binder of pie charts and revenue data

Article Summary: When looking at the financial health and investment prospects of a company, one must obviously take into account how much revenue the company is generating. However, in order to get a complete picture of a company’s financial health, EBITDA is crucial. EBITDA is a different way of calculating a company’s financial health than […]