Ssemujju kezekia james

New changes !

Now that we are in the last quarter of 2024 start preparing to file your final returns

https://www.aljazeera.com/amp/news/2023/8/10/uganda-defiant-after-world-bank-halts-funding-over-anti-lgbtq-law

Uganda defiant after World Bank halts funding over anti-LGBTQ law President Museveni says the country will reduce borrowing and not give in to pressure from foreign institutions.

It has been a blessed year working with you and your organization. May the New Year continue bringing more beneficial business to both of us, I wish you a happy new year

www.azultoursandtravel.com

AZULTOURS AND TRAVEL – We Can Take You There Azul Tours and travel is a Uganda-owned private limited company, we were established to provide Flight reservations & Air Ticketing, Tour packages (both leisure and study), Airport pick-ups & Transfers, Hotel booking (both local and international), Car hire & rental services, Honeymoon packages, Vis...

Have you learnt about new amendment in VAT filing! If not then check the new Monthly VAT Return template. You will realize that there’s section G-I(New) and Section G-II(New) for further clarity call Direct on my mobile

Today let’s talk about Investement.while interacting with a Private Equity Investor, I asked him if he has to choose only one metric before investing in any Growth Stage company then what would it be?

He replied he would always keep a close watch on Rule of 40 performance.

If you are wondering about what is Rule of 40, this post will give you an idea.

The rule of 40 is a Company Health Metric that measures the trade-off between profit and growth

Rule of 40 suggests that Investors will only invest in companies with a combined Revenue Growth Percentage + EBITDA margin percentage above 40%.

Let’s take a simple example of Rule of 40 for a SaaS-based Business which is attached:

- Year on Year Revenue Growth Rate= ($30 million- $25 million)/ $25 million= 20%
- March 2022 EBITDA= $7 million
- 2022 EBITDA Margin %= EBITDA/ Total Revenue= $7m / $30m= 23%

Rule of 40= Revenue Growth %+ EBITDA Margin%= 20%+23%= 43%> 40%

If the number is:

Below 40%- if the company is in the early start-up stage, nothing to worry about. But if the company is in the growth stage, the Founder needs to take the matter more seriously

Exact 40%- Hitting the 40% mark means the company is eligible to be attractive as a business

Above 40%- Anything above 40%- 45% means the company is a profitable and growing company. However, they need to make sure that there is a proper balance between profit and growth otherwise this might be a fluke or short-term success.

According to Brad Feld, a good time to start measuring Rule of 40 is:
- when the company reaches $1 million MRR.
- and they have clearly separated and functioning departments like customer care, resources, CSM, R&D, distribution, and marketing.

- the main focus should be on Gross Margins, Operational Productivity, Sales Growth, EBITDA, etc

That’s it for today nice weekend

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During these hard times when the economy is tight, This is when u need to capture every transaction in your business regardless of the size and its nature. Above all you need to spend where necessary. To manage your stock levels well. Give priority to fast moving goods.

A small reminder from Uganda Revenue Authority (URA)

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Are you having challenges with book keeping in your business? Im offering free Auditing and Book keeping consultations in the first two weeks of November. DM for an appointment