Marginal Value

Marginal value in small business is the amount of financial wealth difference when one or more incremental factors exist over other variables. Learn how to create marginal value by identifying the factors that affect your business and implement improvements.

Railroad Fund Balance 06/30/2020

49.060606 Shares of Norfolk Southern Corporation – Closes at $175.82/Share  FMV =  $8,625.84 (Avg Buy Price/Share = $203.83 for Basis of $10,000.00)
Cash Position including recent dividend payment from NSC                                        =  $1,555.16
Total Fund Balance                                                                                                         = $10,181.00
FMV Gain as a % Since Inception:                                                                                 =       1.81%

Discounts – Various Meanings in Business

Discounts

The term ‘discounts’ is a broad and varied meaning word when it comes to use in business. It literally has four distinct definitions. Each definition is used within a certain context of business. The first and most dollar expensive use is with original issue discount related to bonds in the market. The second use and most common is as an incentive in business.

Fair Market Value

Fair Market Value

Value at the individual level is strictly personal.  But as more buyers for the same item come into play the price of the item begins to stabilize. If there are hundreds of thousands of buyers, the price reaches a high level of consistency or what is called ‘Fair Market Value’.

Absolute Dollars

Absolute Dollars

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.

Business and Industry Growth

Business and Industry Growth

The second most weighted factor in the risk multiplier series for the Discretionary Income Multiplier Formula is business and industry growth. This factor evaluates the overall change in an industry and in particular the business under review over the most recent three years.

Focus Groups – Adding Real Value to Your Business

Focus Groups

I often wonder how a business could get better if it didn’t know what being the best meant. How could a small business entrepreneur determine he was indeed performing at or above the industry standard if there was no information available to say what was the best, average or poor? There isn’t any real performance standard, that is financial standards, for any particular small business operation.

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