Financial Intelligence

In this podcast I talk about the business model as it pertains to the cost structure of a business. The subjects of operating leverage and business model go hand in hand. Operating leverage is about the change in profitability based on a change in sales. Depending on the the proportion of fixed and variable costs in you business a change in sales will have a different impact on your profitability. Find out how risk is related to your business model based on your variable and fixed cost structure.