money-decisions
The order made a profit. Why is payday still tight?
A fictional print shop shows what happens when it pays for a job weeks before the customer settles the invoice.
IDEAS / ENTERPRISE / ECONOMICS
A journal of ideas & enterprise
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the value.
What makes a business work? Look at what comes in, what goes out, and the decisions in between.
Read from the journal ↗NOTE 01 / THE BUSINESS MODELAN ILLUSTRATION
The publication
From the journal.
business-models
Why a lower wholesale price can still make sense
A maker compares selling online with supplying a shop. The comparison changes when packing time, fees and order size enter the calculation.
work-ideas
How to find the step that sets the pace at work
Watch where jobs wait and measure what each step completes. The fastest station may have little influence on how much the team finishes.
business-models
What inventory turnover can tell a small shop
A turnover ratio describes the speed of sales relative to stock on hand. Seasonality and empty shelves can change the story behind it.
business-models
How many orders can a price rise cost before it stops paying?
A two-price example separates revenue from contribution and gives a small business a threshold it can check against actual orders.
work-ideas
The customer interview starts with “Tell me about the last time”
Questions about a recent task reveal the steps and workarounds a small business can test.
work-ideas
The team shipped more orders. Did productivity rise?
A small packing-room example shows how output per hour can fall while the total number of orders rises.
money-decisions
What is an early-payment discount worth?
An invoice offers 2% off for paying 20 days sooner. The arithmetic is simple once the cash dates are clear.
money-decisions
How long would new equipment take to pay for itself?
A simple payback calculation is only as good as the savings entered into it. Test what happens when the business uses the equipment less.