FINANCE
When
deciding as to whether you should set up a business, one of your
first considerations will be your resources.
Do you have the:-
1. Personnel
2. Time
3. Capital
It is the
lack of ‘start up’ capital that often stops a great business idea
form reaching fruition. Sometimes the business does get started but
falters due to the operator running out of money before the
business can bring in enough to be self-sufficient.
One of
the most common areas for businesses failure is due to inadequate
financial planning and inaccurate costing of the product or
service.
Manufacturing
Costs
A great ‘rule of thumb’ when beginning making a product is the
following:-
1.
Prime Costs
Cover the cost of raw materials and labour
Now if
you are going to supply the labour, you must still cost it in, as
at some stage in the future you may need to pay someone else to do
the work and therefore you must have their wage covered in the cost
of the product.
2.
Overheads
Include 40% of Prime Costs as Overheads.
It seems
that most Home based Business operators forget to include something
in their overheads when they try to list them e.g. if you have a
vehicle do you include a cost that could cover it if the engine
failed?
3.
Profit
Add up to 100% for the profit margin
It is
this figure which you can adjust – NEVER adjust the
costs!
Loans
& Leases
1. Fairy
Godmother Equipment Finance
Financial
Organisations
1.
Women's Financial Network
Financial
Newsletters
1.
Adept Training
2.
Australian Finance
Supporting the
Community
1. Ethical Wealth
Management
|
Tailor the right mix of
financial products for your unique situation and aspirations
enquiries@mmloans.com.au
Do you want a
network
that specialises in
marketing for HBB?
www.mcei.org.au
HOW CAN YOU
FUND A BUSINESS?
Are You Scared of
the Risk of
Running a Business?
FREE e-book
http://tinyurl.com/ozr4u
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