Adlega Blog:

What Is Gross Burn Rate? Gross Burn Rate represents the total amount of money a company spends each month before factoring in any revenue. What’s Included in Gross Burn Rate? 💼 Operating Expenses: Employee Costs: Salaries and wages Benefits and payroll taxes Contractor payments Training and development Facility Costs: Rent Utilities Maintenance Technology Costs: Software…

What Is Cash Burn Rate? Cash Burn Rate shows how much money a company spends over a specific time period (usually monthly). What’s Included in Cash Burn Rate? 💼 Operating Expenses: Salaries and wages Rent and utilities Marketing costs Software subscriptions Office supplies Non-Operating Expenses: Debt payments Equipment purchases Capital investments One-time costs Legal fees…

  What Are Assets and Liabilities? Assets are everything a business owns or controls that has value. Liabilities are everything a business owes to others. It’s like comparing your belongings (assets) to your debts (liabilities) to understand your financial position. What’s Included in Assets and Liabilities? Assets Current Assets: Cash Inventory Accounts receivable Short-term investments…

What Is Equity? Equity represents the value that would be returned to owners after selling all assets and paying off all debts. It reflects your ownership stake in a business, whether you’re a sole proprietor, shareholder, or investor. What’s Included in Equity? Equity typically includes: Owner’s Investments: Initial capital Additional investments Stock purchases Retained earnings…

What Is Liquidity? Liquidity represents how easily assets can be converted into cash without significantly losing value. It’s like having different types of money: cash in hand, funds in a checking account, or money tied up in long-term deposits. What’s Included in Liquidity? Liquidity typically includes assets grouped by their ease of conversion into cash:…

What Is Cumulative Gain (Loss)? Cumulative Gain (Loss) represents your total profit or loss picture over time. It’s like keeping a running score of your financial performance, adding each new result to the previous total to see your overall progress. How to Track Cumulative Gain (Loss) Tracking cumulative gain (loss) involves these simple steps: Start…

What is Fundraising? Fundraising is the process of collecting money to finance your business initiatives. It’s how companies get the resources they need to grow, develop products, or expand into new markets. Types of Fundraising Equity Fundraising: Selling shares of your company Debt Fundraising: Taking loans or issuing bonds Grant Fundraising: Getting money that doesn’t…

What is Operating Cash Flow? Operating Cash Flow shows how much cash a business generates from its regular business activities. Components of Operating Cash Flow Let’s break down what makes up Operating Cash Flow: Revenue: Money coming in from sales Operating Expenses: Regular costs of running the business Working Capital Changes: Changes in inventory, payables,…

What is Paid Media? Paid media is any type of marketing that you pay for directly. Think of it as renting space or attention to promote your product or service. It’s like buying a billboard, but in today’s world, it comes in many more forms. Types of Paid Media Display Ads: Visual advertisements on websites…

What is Influencer Marketing? Influencer marketing is when brands collaborate with social media personalities (influencers) to promote products or services. Think of influencers as modern-day word-of-mouth advertisers, sharing brand messages with their engaged followers. Who is an Influencer? An influencer is someone with the ability to affect other people’s purchase decisions due to their: Knowledge…

What is Sponsored Content? Sponsored content is a form of marketing where companies pay to place their content on media platforms. It blends seamlessly with the platform’s regular content and clearly shows “sponsored” or “paid.” Main Elements of Sponsored Content Content: Articles, videos, or posts that provide value to the audience. Placement: Where the content…

What are Display Ads? Display ads are visual advertisements shown on websites, apps, and social media platforms. They combine images, text, and sometimes animation to catch users’ attention and drive action. Think of them as the digital evolution of traditional print ads! Common types of display ads include: Banner ads Image ads Rich media ads…