The first stage in the life cycle of any enterprise is project development. All enterprises are created to bring profit to their founders, that is, to be profitable. Therefore, the importance of calculating the profitability indicator of the planned enterprise is the most important step in drawing up a project. Investors pay attention to the profitability indicator when preparing a decision on investing money in a project.
It is necessary
- - calculator;
- - a computer;
- - primary documents.
Instructions
Step 1
Calculate the planned volume of production and sales of products manufactured at the design enterprise. Conduct marketing research. This is a very important and responsible step that will help you determine the parameters of supply and demand for this product and its analogues, as well as a competitive price in the market. In a competitive market, starting production without accurate and high-quality marketing research can lead to unforeseen financial problems, or even complete bankruptcy. Having decided on the amount of products sold, as well as on a competitive price, it is possible to calculate the projected gross income from the sale of this type of product.
Step 2
Calculate the gross manufacturing cost of the product. The gross costs include: the cost of production and the cost of its sale. The cost of production is the total value of all enterprise costs associated with the release of a given type of product. These costs include: remuneration of basic production workers, costs of capital and current repairs of equipment, transportation costs, labor protection and fire safety costs, other administrative costs, etc.
Step 3
Determine the value of the gross profit indicator. Gross profit is the difference between the gross income from the sale of products and the gross costs of the enterprise associated with the production of these products. If you know the sum of the indicators of gross profit and gross expenses, you can calculate the profitability indicator of the future enterprise. The profitability of the project is calculated as the quotient of dividing the gross profit by the gross expenses. Usually, the average permissible rate of return on production of products ranges from 5-15%.
