A focused collection of ideas, frameworks and practical lessons from the Millionaire Lesson library.
TAM, SAM, and SOM are market-sizing layers: Total Addressable Market estimates broad theoretical demand, Serviceable Available Market narrows to what the offering can serve, and Serviceable Obtainable Market estimates a realistic reachable portion.
Read articleThe cash conversion cycle estimates how long operating cash is tied up between paying for inputs and collecting cash from customers.
Read articleWorking capital usually refers to current operating assets minus current operating liabilities; managing it means controlling inventory, receivables, payables, and other short-term operating cash commitments.
Read articleGross profit is revenue minus cost of goods sold or direct cost; net profit is the residual after operating expenses, interest, taxes, and other items…
Read articleBusiness concepts are reusable ideas that explain how organizations create value, earn money, allocate resources, manage costs, compete, and turn customer demand into durable economics.
Read articleA business concept is a concise explanation of what customer problem will be solved, for whom, through what offering and operating model, and how the…
Read articleA business model explains how an organization creates value for customers, delivers that value through activities and channels, and captures enough revenue and margin to…
Read articleUnit economics measure the revenue, variable cost, contribution, acquisition cost, retention, and cash behavior associated with one economically meaningful unit such as a customer, order,…
Read articlePricing power is the ability to raise or sustain price without losing enough volume, customer value, or competitive position to make the increase economically harmful.
Read articleGross margin is gross profit as a percentage of revenue after subtracting cost of goods sold or direct costs classified above gross profit.
Read articleContribution margin is revenue minus variable costs; it shows how much incremental revenue remains to cover fixed costs and profit.
Read articleFINANCE · COST STRUCTURE · PROFIT SENSITIVITY Operating leverage is the sensitivity of operating profit to sales around a specific cost structure. It can create…
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