Dividends explained

Dividends are distributions of profits to stockholders.  Corporations pay dividends; dividends paid by partnerships and sole proprietorships are called “withdrawals” or “drawings.” “Dividends” generally refer to cash dividends, cash payments to stockholders as a distribution of their profits.  After all, profits belong to the stockholders. “Stock dividends” actually refer to distributions of stock, when companies […]
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What are revenues?

Revenues are inflows earned from your customers. The key factor to understanding revenues is understanding that you must earn them.  To earn a revenue, you must provide whatever service or product it is that you provide to your customers.  For example, if you sell yoga equipment through an e-commerce site, then you will earn revenues as […]
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Do more with less

Perhaps the most powerful aspect of e-commerce is the ability of web entrepreneurs to create major business using almost no assets. Consider one of the great retailers of yesteryear: Sears Roebuck. To generate tremendous sales, Sears built a chain of department stores across the country, printed a fat catalog every year, and then mailed it […]
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Step costs explained

To run a business, you must understand how your business’s costs behave.  A fixed cost is any cost that will remain the same, regardless of changes in your sales volume.  Variable costs are costs that change with sales volume.  The greater your sales, the greater your variable costs. Step costs change only at certain intervals.  For […]
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Using OmniFocus

I’m a big fan of OmniFocus for iPad.  Teaching classes, running an academic department, performing research, blogging, not to mention leading a large family and being active in my community, I keep busy.  And I’ve tried a lot of different organizers.  I’ve tried hand organizers (I had two Palms), cell-phone organizers (terrible), Windows programs (I […]
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How many eggs are in your basket: Diversification

The proverb goes like this: “Don’t put all your eggs in one basket.” In stock-picking, they call it “diversification.”  You should own 6-10 different stocks, in different industries, rather than focusing on a single company, industry or sector. The same rule applies to running your own business.  To build and grow a secure business, diversify. […]
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