How To Calculate Break Even Point (BEP) in Sales and Units. Let me assume that you don’t know how to calculate break even point. But before we start talking about how to calculate the break even point, it is important you have the understanding of what the break even point is. Break even point analysis
Margin of Safety is a term every small business owner must learn and understand. Margin of safety(MOS) is the amount by which your budgeted or actual revenue has to drop before you reach your breakeven point. In the other word, it is the excess of budgeted or actual sales over the break even sales figure.
If You Have A Marketing Strategy in Place, Selling Becomes An Easy Task. Having a marketing strategy will play a crucial role in the success of any product or service. No matter your innovation or the ingenuity of your offering, if customers do not get to know about it, there is no way it will sell. “Doing
How To Determine The Amount To Budget on Marketing. Now that you know the need to spend money on marketing, you may like to know the amount that will be appropriate to be set aside for this. There is no ‘one fits all’ approach to this. But generally, amount of a marketing budget can be
Preparing cash flow forecast does not require a high level of skill in accounting. Cash flow forecast is a vital tool you can use to control the financial aspects of your small business. Companies don’t go bust because they lose money; they go bust because they run out of money. Most small businesses equate success with
Business failure is a common phelomenon but it can be avoided. Business failure rate within the first 18 months is put at 80% by Bloomberg. All small business owners usually start their businesses with excitement and great expectation to succeed. Along the line, you discover that most of these small businesses usually fail within five
Content of Business Partnership Agreement. Business partnership is the relationship that exists between two or more persons (but no more than twenty) who come together to carry on a trade or business. People are attracted to business partnership because of the advantages it has over sole proprietorship. If you want to consider business Partnership, you should ensure
Things to Do Before Starting a Company. Starting a company is the dream of many. If you are reading this article, I believe that you are among the people that are considering starting a company either now or in the near future. This desire is laudable indeed but you don’t need to rush into it.
Dear Employee, I congratulate you on your new job. Whether you just got a new job or you have been working for some time, this letter is for you. You will agree with me that you are probably not the only person that applied for the job. By one reason or the other, you are
Insufficient capital can be advantageous. Every entrepreneur needs capital to start, run and grow his business. Without capital, a lot of things can be hampered. However, at times, lack of sufficient capital can be a blessing in disguise. In every dark cloud, there is a silver lining. If you think that not having sufficient capital
