Calculate

How To Calculate a Business Valuation: 3 Common Ways (2024)

November 13, 2023
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As a business owner, you may be asked to calculate the fair market value of your business, known as your business’s valuation. The circumstances that warrant a small business valuation process include: Refinancing a loan Planning to bring on additional shareholders or partial owners Looking to sell your business Personal legal proceedings can also require a valuation—a divorce, for instance, may require a thorough accounting of your business assets. There are various ways to calculate business valuations. The approach you…

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How To Calculate Inventory Shrinkage and Mitigate Its Risks

November 8, 2023
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Inventory shrinkage is the bane of every retailer’s existence. You work hard to source stock to sell, so when it disappears before you can sell it, that’s a problem. But it’s a problem that you need to address systematically. That’s because if you ignore it, it could get worse and begin to threaten your profitability. This article explores why inventory shrinkage happens, how to calculate it, and what steps you can take to reduce it as much as possible.  …

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How To Calculate Your ROAS (2023)

November 8, 2023
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Whether you rely on digital advertising or traditional methods such as TV commercials, print ads, and billboards, the costs can be substantial. To ensure efficiency, you need to balance advertising expenses with the potential revenue an ad campaign might generate. One way of determining whether different campaigns are cost-effective is by calculating the return on advertising spend (ROAS). Read on to learn more about ROAS, how to calculate it, and tips for increasing it. What is return on ad spend?…

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How to Calculate Average Order Value & 5 Tips to Increase It

September 27, 2023
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Increasing your customer’s average order value will increase your ecommerce store’s profitability. At first, this seems very logical and intuitive—just get customers to buy more and you will make more money! However, do you actually know how to do it? More importantly, do you even know how to calculate your average order value? This post will cover both of those topics! How to calculate average order value (AOV)? Before learning how to boost your average order value, it is very…

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What Is Break Even Analysis and How to Calculate and Use It

August 17, 2023
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A break-even analysis is a financial technique that aids a business in figuring out when it will become viable to provide a new service or product. Put another way, and it is a financial formula for figuring out how many goods or services a business should sell or provide to pay its expenses (particularly fixed costs). Break-Even Analysis Definition An organization is at break-even if all expenditures have been paid, but no money is being made or lost. Source: Pinterest…

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Shipping cost per order: How to calculate your shipping costs

August 11, 2023
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Written by Beth Owens on August 11th, 2023 Most e-commerce businesses are familiar with the importance of calculating Cost Per Order (CPO) and finding ways to optimize the cost of fulfilling orders. But it’s equally important to break this down to analyze the key costs with a lot of influence over your fulfillment costs – namely, the cost of shipping. Shipping cost per order is a vital metric in e-commerce to help an online store control its shipping expenditure and…

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How to Calculate Customer Lifetime Value (2023)

July 7, 2023
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How do you measure your online store’s success? Do you typically focus on things like sales and revenue? While these metrics are useful for tracking the short-term performance of content and campaigns, they don’t always paint a complete picture of your business’s future. Even looking at your current sales numbers can sometimes leave you with just a fleeting glimpse of your true financial situation. Customer lifetime value (CLV) is one of the most important factors in determining your business’s present…

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How to Calculate Minimum Stock Inventory Levels (With Examples)

July 7, 2023
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The bare minimum of keeping customers happy in eCommerce is to meet their expectations. That means having the right product in stock, shipped on time, and delivered with no issues. Needless to say, stock-outs are one of the easiest ways to lose sales (as well as frustrate customers and hurt your brand’s reputation). One of the best ways to ensure you never run out of a product is to get control of your minimum stock levels. But how do you…

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Best Shipping Rates: How to Calculate Delivery Costs

June 27, 2023
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Offering customers the best shipping rates is essential in a highly competitive retail environment. You don’t want to guide customers through the entire purchase journey only for them to abandon their basket at the end due to high shipping rates. The influence of shipping costs on purchase habits is sizable. Finding that delicate balance between delivery speed and profitability is one of the most challenging (yet essential) parts of running an eCommerce business. In a recent study conducted by Convey of 2,500 U.S.…

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how to calculate with examples

June 27, 2023
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In today’s competitive business landscape, understanding and measuring customer satisfaction is crucial. One widely-used metric for this purpose is the Net Promoter Score (NPS). By gauging customer satisfaction and experience, it provides valuable insights that can help drive business growth and success. Now it’s time to dig deeper, we will understand what NPS is, how to calculate it, its strengths and limitations, and how you can use it to improve your company’s performance. What is NPS? Net Promoter Score (NPS)…

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