Operational gearing is an important tool for business owners and entrepreneurs. It’s a measure of how much profits are being generated by the company’s day-to-day operations, as opposed to its investments. In other words, it can tell you how lean your business is running. Although it might seem like a complex concept, operational gearing is actually quite simple to understand. Keep reading to learn more!
Operational gearing is all about understanding the different types of costs in your business and how they impact on your ability to make a profit.
And finally, I wanted to give you a little gift – my FREE online calculator that does all the hard work for you! It considers all the different factors involved in calculating operational gearing and gives you a clear indication of how healthy your business is. If you’d like to check it out, just click the link. Thanks for watching and I’ll see you next time!
So there you have it. The video shows What is operational gearing, the different types of costs you may have in your business, and how to calculate it. We’ve also looked at why operational gearing is important and what decisions we can make as a result of our level of operational gearing. I hope you found this helpful and that my FREE online calculator makes calculating operational gearing even easier for you!
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