Calculations are the compass that guide business decisions including budgeting, strategic planning and budgeting. Knowing the fundamental formulas that are required for the success of your business is essential, whether you’re just beginning your journey or have been running a business for a long time.
A business calculator is a handheld device that gives an easy and efficient method of performing calculations on the go without the need for an internet connection or a smartphone. A basic business calculator could have just one button and display, while more advanced models can include scientific or graphing functions.
The break-even point is the number of products or services your business has to sell in an amount of time to cover all of its fixed and variable expenses and earn a profit. This information can be used to set sales goals, determine prices and predict when you will earn your first profits.
Costs are the money your company uses to purchase products such as services, overhead and other items. Subtracting your earnings from your expenses will give you net income, which could be the measure of how much your company is actually making at the end of each day. You might also hear this figure referred to as net income, net earnings, or bottom line.
Start-up costs are the cost that are associated with starting a business. This figure includes items like equipment, inventory, supplies and rent. This calculation is useful when you are seeking financing or looking at possible opportunities. This calculation can be used to determine your company’s growth strategies and ways to increase shareholder value.