Calculations are the compass to guide business decisions, budgeting and strategic planning. If you are launching an entirely new venture or have been in business for a long time, understanding the most important formulas necessary for your business to flourish is essential.
A business calculator is an electronic device that provides an easy and efficient way to perform calculations on the move without the need for an internet connection or a smartphone. A typical business calculator could have a single button and a basic display, while more advanced units may include graphing or scientific functions.
The break-even threshold is the number of products or services your company needs to sell in an amount of time to cover all of its variable and fixed costs and to make profits. This data can be used to establish sales goals, determine prices, and estimate the time when you’ll make your first profit.
Expenses are the money that your business spends on goods such as services, overhead and other items. Net income is calculated by subtracting your income from your costs. This is used to measure how much money your business earns at the end each day. You may also be able to hear this figure described as net income, net earnings, or bottom line.
Start-up costs are the cost for establishing a company. This figure includes items like equipment, supplies, inventory and rent. This calculation is useful when requesting financing and assessing possible opportunities. It can also assist with determining the growth strategy of your business and how you can increase shareholder value.