Archive for 'Uncategorized'

MRx

What’s your MRx?

And what is it, you ask?

It kind of looks like a prescription (e.g., Rx), right?

And, in a way, it kind of is.

Blue Elevator®’s Secret Formula

At Blue Elevator®, we have a lot of secret formulas. And, this is one of them. If you are a Member of the advisory practice, hopefully you already know it.

But, just in case, we are going to give it to you here:

MRx = WC/MFC

Distilling MRx

Now, I will define the variables for you:

WC

WC stands for ...

Calculating Your Break-Even Point

Now, if you’ve done all your homework, you are ready to calculate your Break-Even Point.

If you haven’t already, you can read these primer articles in the following order:

• Break-Even Point
• The Break-Even Model
• Calculating Gross Margin
• Below the Line Costs
• Break-Even Point and Balance Sheet Activity

Once you have been through all of those articles, you are ready to calculate your Break-Even Point.

How to Calculate Your Break-Even Point

All along, like a recipe, you have been assembling all your ...

Break-Even Point and Balance Sheet Activity

Your Break-Even Point and your Balance Sheet activity are inter-related.

Thus far, we’ve covered that when you are working on your Break-Even Model (e.g., BE Model), you will need to consider the following various factors:

• The Break-Even Model
• Calculating Gross Margin
• and, Below the Line Costs

P & L Activity

So far, you should have identified all of the P & L (Profit & Loss) based expenses.  If you have done this thoroughly and completely, you should have ...

Below the Line Costs

This article will advise you on how to identify and calculate your organization’s Below the Line costs.

At Blue Elevator®, our definition of Below the Line refers to any cost that occurs below the Gross Profit line.

And, identifying your Below the Line costs is part of the process on building your Break-Even Model.

Primer Articles

If you are here for purposes of building a Break-Even Model, and you haven’t read the primer articles, here they are:

• The Break-Even Model
• Calculating ...

Calculating Gross Margin

Calculating Gross Margin is an important exercise and discipline.  After God, margin is probably the single most important elemental factor for organizational viability.

We discuss this in an article titled God First Then Gross Margin.

I would invite you to read that article if you haven’t already.

Simply stated, if your organization doesn’t have adequate margin, it will be tough to scale — if not survive.

If you have started an article series on calculating your Break-even Point, you can also read ...

The Break-Even Model

Welcome to an article on the Break-Even Model.  If this is your first Blue Elevator® “break-even” article, I would invite you to read a primer article: Break-Even Point.

Break-Even Point

In the aforementioned article, we discuss the “why” and “what” behind this important concept.  And, in this article and the ones to follow, we will discuss “how” to calculate it.

Your Custom Personal Break-Even Model

For as long as I have been in business, I have always built and used custom ...

Stepping Out

When you hear the term “stepping out,” how does that impact you?

• Does it excite you?
• Does it make you anxious?

It might depend on the circumstances, right?

A Better Way of Life

On the surface, most CEOs probably get into business because they’re looking for a better way of life.  To achieve.  To conquer.  And, to be their own boss.  To have more money.  To have less stress.

“And I saw that all toil and all achievement spring from one person’s envy of another. ...

Break-Even Point

I’ve also seen our subject labeled as “break even” (no dash) point.  For purposes of this article, I’ll use “break-even” (with a dash) point.

Do You Know Your Break-Even Point?

Chances are, if you’re reading this article, you are someone that has waded into the business realm.  You’ve probably also heard the term break-even.

But, do you know your break-even point?

On a personal note, you’ve probably had to deal with your personal break-even point.  This is not to be confused with your ...

The Caring and Feeding of Assets

There are three costs to consider when it comes to the caring and feeding of assets.

I forgot where I heard about the three costs, but it was enlightening.  Now, I’m paying it forward, so to speak.

Here is a trustworthy saying:

“What has been will be again, what has been done will be done again; there is nothing new under the sun.” — Ecclesiastes 1:9

Nothing New Under ...

Top Down, Bottom Up

Top Down, Bottom Up.  This sounds like a mixed martial art move.  Or, perhaps something you do in gymnastics.

But for this article, it refers to two distinct approaches to budgeting or projections.

Planning

“In their hearts humans plan their course, but the LORD establishes their steps.” – Proverbs 16:9

Planning is an important discipline.

In fact, Jesus himself used an example of this when he was discussing the cost of discipleship.

“Suppose one of you wants to build a tower. Won’t ...