Internal Rate of Return or IRR is the value rate earned on investment made by the company with its working capital. In the small business world, this form of financial investment evaluation has little to no value. Allow me to restate this: ‘IRR has limited to NO value in the small business world’.
Month: September 2014
In the hospitality industry, there is one financial tenet that takes precedence over any other business perspective. In this industry, it is about putting the maximum number of dollars (ABSOLUTE DOLLARS) in the register after each day. One of the most misunderstood business dynamics of this industry is the higher than average fixed cost to run the company.