Advice 1: How to calculate turnover

The entrepreneur organizes a new business, you must have a very clear idea about what would be the profit of the company and what costs it will incur, and, consequently, that must be it financial or product turnover. Without these suggestive findings business start up is risky.
How to calculate turnover
Instruction
1
To plan the expected company's turnover, or, in other words, the estimated quantity of goods or services that will be implemented, it is advisable to take note of the existing experience, gained in a similar (similar in profile) enterprises.
2
After completing the calculation of the commodity or financial turnover over a certain period of time and determining which costs will occur to ensure this turnover, by computing the difference between the first and second, you will designate the profits that will bring the company.
3
For more detailed calculations use the classical scheme: from the estimated annual amount (monthly, quarterly – whatever you like) turnover subtract the amount of funds required for the purchase of goods in this period (it's usually 60-70%). Don't forget also in the list of regular expenses include payment of salaries of employees, rent of premises, cost of transportation, insurance, communications (Fax, telephone, etc.), depreciation, and repair of equipment, taxes, legal advice. Resulting from all of the major deductions, the result is a profit.
4
If preliminary calculations show a lack of profit or cost superiority over the circulation, measures must be taken to reduce costs or find additional source of income. As a means to increase the income of the enterprise can be recommended to conduct an advertising campaign. Experience shows that financial and commodity turnover after its implementation far exceed the flow of funds spent for these purposes.
5
From the project implementation should be avoided, if measures to reduce the cost of their dominance over the trade, it would be impossible for the enterprise.

Advice 2: How to calculate the costs

Any budding entrepreneur interested in how much it will cost the opening of a business, especially if it is associated with the release and production. On how well will be costed in production, will depend on further activity of the enterprise.
How to calculate the costs
Instruction
1
To begin to determine the extent to which you will provide services or produce products. You should clearly know that this month you will produce, for example, 200 pieces of product or provide a service to 200 people.
2
Now calculate the variable cost (costs that change based on the amount of service or output), it is necessary:
To calculate the cost of materials (cost of raw materials, which will be buying for the manufacture of products). The cost of raw materials required for production of unit of product is multiplied by the volume of the planned issue. If you provide a service, in this case, you will not have this costs.
3
The cost of labor. Decide how many people will you have to work to meet the production plan or service plan, and how much salary you pay them.
4
Deductions on social needs. As a rule, contributions to the social security Fund and insurance Fund. The percentage of a probe into the transactions.
5
Now you need to calculate the costs are constant (they are not associated with volume of rendering of services or manufacturing of goods). They consist of General production and General business expenses (include expenses for rent, depreciation of purchased equipment and fixed assets, etc.), commercial expenses (advertising costs and delivery of the goods to the consumer – if it's there).
6
All amounts, variable and fixed costs need to be added. This will be your cost of producing and manufacturing products.
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