Operating Leverage (Entrepreneurial Finances) - Definition, Examples, Advice | Bolder Money

Accelerators Accelerators

Accounts Payable Accounts Payable

Accounts Receivable Accounts Receivable

Bookkeeping Bookkeeping

Bootstrapping Bootstrapping

Break-even Point Break-even Point

Budgeting for Business Budgeting for Business

Burn Rate Burn Rate

Business Credit Business Credit

Business Credit Line Business Credit Line

Business Credit Score Business Credit Score

Business Debt Business Debt

Business Equity Business Equity

Business Expense Policy Business Expense Policy

Business Grants Business Grants

Business Insurance Business Insurance

Business Interest Expense Business Interest Expense

Business Loan Business Loan

Business Overhead Business Overhead

Business Plan Business Plan

Business Risk Management Business Risk Management

Business Savings Account Business Savings Account

Business Tax Business Tax

Business Valuation Business Valuation

Cash Budgeting Cash Budgeting

Cash Conversion Cycle Cash Conversion Cycle

Cash Flow Forecast Cash Flow Forecast

Cash Flow Management Cash Flow Management

Cash Runway Cash Runway

Competitive Analysis Competitive Analysis

Competitor Research Competitor Research

Cost Control Cost Control

Cost Structure Cost Structure

Cost of Customer Acquisition Cost of Customer Acquisition

Cost of Goods Sold (COGS)Cost of Goods Sold (COGS)

Credit Management Credit Management

Crowdfunding Crowdfunding

Customer Lifetime Value Customer Lifetime Value

Debt Financing Debt Financing

Digital Payments Digital Payments

E-commerce Financing E-commerce Financing

Economic Value Added Economic Value Added

Entrepreneurial Risk Entrepreneurial Risk

Equity Financing Equity Financing

Exit Strategy Exit Strategy

Expense Reimbursement Expense Reimbursement

Expense Tracking Expense Tracking

Financial Benchmarking Financial Benchmarking

Financial Contingency Planning Financial Contingency Planning

Financial Cushion Financial Cushion

Financial Projection Financial Projection

Financial Record Keeping Financial Record Keeping

Financial Reporting Financial Reporting

Fixed Cost Fixed Cost

Freelance Freelance

Gig Economy Gig Economy

Gross Profit Gross Profit

Growth Strategy Growth Strategy

Incubators Incubators

Inventory Management Inventory Management

Investment in Business Investment in Business

Invoice Management Invoice Management

Long-term Financing Long-term Financing

Market Analysis Market Analysis

Mentorship Programs Mentorship Programs

Merchant Services Merchant Services

Microloan Microloan

Mobile Payments Mobile Payments

Monthly Recurring Revenue Monthly Recurring Revenue

Net Operating Income Net Operating Income

Net Profit Net Profit

Online Payment Processing Online Payment Processing

Operating Cash Flow Operating Cash Flow

Operating Leverage Operating Leverage

Operating Margin Operating Margin

Operating Profit Operating Profit

Personal Guarantee Personal Guarantee

Point-of-Sale System Point-of-Sale System

Pricing Strategy Pricing Strategy

Pricing Structure Pricing Structure

Profit Margin Profit Margin

Profit Margin Analysis Profit Margin Analysis

Profit Projection Profit Projection

Profit Reinvestment Profit Reinvestment

Profitability Analysis Profitability Analysis

Recurring Revenue Recurring Revenue

Resource Allocation Resource Allocation

Revenue Cycle Revenue Cycle

Revenue Diversification Revenue Diversification

Revenue Forecasting Revenue Forecasting

Revenue Growth Revenue Growth

Revenue Streams Revenue Streams

Revenue per Employee Revenue per Employee

Sales Forecasting Sales Forecasting

Sales Tax Sales Tax

Seed Funding Seed Funding

Short-term Financing Short-term Financing

Side Hustle Side Hustle

Small Business Administration (SBA)Small Business Administration (SBA)

Supply Chain Financing Supply Chain Financing

Product 1:1 Coaching Our Coaches Our Story

Product 1:1 Coaching Our Coaches Our Story

Definition

Seeing how fixed costs affect profits when sales change. A small increase in sales can boost profits if fixed costs are low.

What to consider

Maintain accurate records of assets and liabilities.
Review equity changes over time.
Consider equity when planning expansion or exits.

Real world scenarios

A startup owner tracks equity growth by monitoring retained earnings and asset appreciation.
An entrepreneur reviews balance sheets to understand the net value of her business.
A small firm evaluates equity before seeking additional investment.

Related terms

Entrepreneurial Finances

Got Any Questions?

Talk to a Financial Coach

Book a free consultation with one of our coaches.

Book a Free Call

coaches@boldermoney.com

Membership Our Story Our Coaches Our Community

Book a Call Money Quiz Playbooks Glossary Blog FAQ

No BS. Just good emails.

Thank you! You are now subscribed!

Oops! Something went wrong while submitting the form.

© 2025, Bolder Money

Terms & Conditions