Calculations are the compass that guides business decisions including budgeting, strategic planning and budgeting. Understanding the key formulas necessary to make your business successful is vital, regardless of regardless of whether you’re just starting out or have been running your business for many years.
A business calculator is an electronic device that allows you to quickly and conveniently complete calculations without the use of computers or smartphones. The basic business calculator may only have one button, and a simple screen and more sophisticated models can include graphing or scientific functions.
The break-even level is the number of products or services your business must sell over the time frame to cover its fixed and variable costs, and to achieve profit. This information can be used to establish sales goals, set prices, and estimate when you may achieve your first profit.
The expenses are the amount your company uses for products, services, and overhead. By subtracting your revenue from your expenses will give you net income, which could be a measure of how much your company is actually making at the end of each day. This figure is also referred to as net income, net profits or bottom line.
The startup costs are the first costs of establishing your company. This figure includes things like inventory, supplies, equipment and rent. This is a useful calculation when you are seeking funding or considering potential opportunities. It can also assist in determining your company’s growth strategy and ways to increase shareholder value.
