Profitability is at the core of any business, from copying services to large construction projects. In economics, there are a large number of theories, coefficients, indicators with which you can calculate the profitability. But what if there is no corresponding education, and there is neither desire nor time to sit and pore over a mountain of books?
It is necessary
Computer, sheet of paper, pen
Instructions
Step 1
First of all, you need to define the very concept of profitability and figure out why it needs to be defined at all. Profitability is the state of your business, which, given the costs you have for setting up and operating (that is, current costs) and with the orders you have, customers, sales volumes (in other words, with future earnings), can bring net income to its owner … Roughly speaking, you bought a product, you sold it, and what you have left after these actions will represent profitability.
Step 2
Determining the profitability of a business is necessary to establish the feasibility of doing this very business. To calculate profitability, economists advise using complex indicators of project economic efficiency, business profitability, that is, to calculate ratios such as NPV, IRR, IP and many others. Such a complex calculation is really advisable to determine the profitability of large investments in business.
Step 3
However, for a simple business, the calculation may be easier. For example, you decided to start copying services. First of all, you need to calculate the investment costs, which in this case will represent the funds you spent on the purchase of a printer (about 5,000 rubles), cartridges (1,500 rubles per 1,000 sheets). Let's assume you have a computer. Thus, your investment will amount to 6500 rubles. Further, we consider the current costs: a sheet of paper at the rate of 0.5 rubles. per sheet, electricity - 0, 3 rubles. per sheet. Thus, the operating costs will be 0.8 rubles. per sheet.
Step 4
Suppose that you can order a printout of the sheet from you via the Internet, and the customer himself comes to your entrance. Thus, the cost of one sheet of printed text will be 0.8 + 1, 5 = 2, 3 rubles. You set the price per sheet at 5 rubles. and print 100 sheets to customers every day, while your revenue will be 100 sheets * 5 rubles. = RUB 500 In this case, your costs will be 2, 3 rubles. * 100 = 230 rubles. Thus, your profit per day will be 500 - 230 = 270 rubles. That is, the business is profitable.
Step 5
However, when determining profitability, it is necessary to take into account a one-time cost of 5,000 rubles. to buy a printer. If your daily profit is 270 rubles, then your investment will be recouped in the amount of 5,000 rubles. it will be possible in 19 days (5000/270). Thus, after 19 days, your business will be profitable.
