“I’m selling a ruble for 90 kopecks. In reality, it’s not uncommon to meet entrepreneurs who work at a loss, but consider their business profitable. True, they think so exactly until it turns out that they are up to their ears in debt. And have nothing to pay with. Most often, this happens because they simply do not know how to calculate the profitability of their own business. Profit, revenue and other indicators.
In this article, we will explain
Why this is important and what economic indicators you ned to regularly monitor to avoid getting into a similar situation.
The first thing you nee to start with is to regularly turkey phone number list keep track of your income and expenses. This nees to be done:
- every month, which allows us to evaluate the effectiveness of work for the month;
- every week to understand what decision neds to be made in order to adjust the company’s operations if necessary.
At the same time, before starting to record income jeff birns ceo / creative director and expenses, it would be useful for an entrepreneur to set a goal of how much he plans to earn in the current month, how much to spend, what share of revenue growth the business should show. Then, from weekly data analysis, it will be clear what specific actions ned to be taken next week to fulfill the plan in the reporting period.
For example, an entrepreneur sets
A goal of receiving income from sold goods in the philippines numbers amount of 200,000 rubles this month. This means that his sales volume for the week in money is 50,000 rubles. If he made sales of 40,000 rubles this week. Then next week he neds to sell goods or services not for 50,000, but for 60,000 rubles, that is, make revenue 20 percent more. And so on for each week: the fewer goods or services are sold in the current reporting period, the more they ned to be sold in the future reporting period.
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