Calculations are a way to guide business decisions, budgeting, and strategic planning. Knowing the fundamental formulas that are required for the success of your business is essential, regardless of whether you’re just starting out or have been running your business for many years.
A business calculator is a handheld device that gives a quick and convenient method of making calculations on-the-go without the requirement of the use of a smartphone or computer. A standard business calculator might have a single button and a simple display, while more sophisticated models can include scientific or graphing functions.
The break-even point is the number products or services that your company has to sell in the given time period to cover its fixed and variable expenses, and to generate profits. This information can be used to establish your sales goals, establish prices, and estimate when you will earn your first profit.
The expenses are the amount your business uses for products such as services, overhead and other items. By subtracting your revenue from your expenses will give you net income, which can be an indicator of how much your business is actually earning at the conclusion of every day. This figure is also known as net income net profits, also known as the bottom line.
Start-up costs are the initial costs involved in establishing your business. This figure includes items like equipment, inventory, supplies and rent. This calculation is useful when you are seeking financing or looking at potential opportunities. This calculation can be used to determine the growth strategies of your business and how you can improve shareholder value.