How Costs, Revenue and Profit are important for running a business? How Costs, Revenue and Profit are important for running a business?
How Costs, Revenue and Profit are important for running a business?
In my business and in any other business the costs, revenue and profit are the most important aspects for running a business as the costs are the amount that has to be paid or given up in order to get something for example in my business the costs I would have to spend in order to create my product (cupcakes) is the ingredients such as flour, eggs, icing etc. The second important aspect for running my business is the revenue as that is the money coming in from sales and that is the money that I would have to use to pay my operating costs with. Finally the third important aspect for my business is the profit in my business there are two types of profit which are the gross profit and the net profit the gross profit is the money you use to pay of all your operating costs and the money left over which is the net profit is the money you get to keep.
In my business I am going to try and decrease my costs by trying to find offers and deals on products that I would need to buy, I would also try and reduce the costs that I have to spend by not over using the products I buy so that I wouldn’t have to constantly replace them, I would also not use expensive advertising to advertise my company I would use stuff such as posters and leaflets by doing this it is increasing the revenue and that would give me enough money to pay my utilities. Also to increase my revenue I could rent out my space to another company who may need it and I would get a percentage. I could also create a saving account in the bank so that I am able to get interest to increase my profit. To decrease costs I could also not hire as many workers as my business is a small company and this will save money so instead of hiring part time I can hire full time also to increase my costs on some of my bills such as the internet and telephone I can find the cheapest deal.
In my business if I am unable to control my costs I would
In my business and in any other business the costs, revenue and profit are the most important aspects for running a business as the costs are the amount that has to be paid or given up in order to get something for example in my business the costs I would have to spend in order to create my product (cupcakes) is the ingredients such as flour, eggs, icing etc. The second important aspect for running my business is the revenue as that is the money coming in from sales and that is the money that I would have to use to pay my operating costs with. Finally the third important aspect for my business is the profit in my business there are two types of profit which are the gross profit and the net profit the gross profit is the money you use to pay of all your operating costs and the money left over which is the net profit is the money you get to keep.
In my business I am going to try and decrease my costs by trying to find offers and deals on products that I would need to buy, I would also try and reduce the costs that I have to spend by not over using the products I buy so that I wouldn’t have to constantly replace them, I would also not use expensive advertising to advertise my company I would use stuff such as posters and leaflets by doing this it is increasing the revenue and that would give me enough money to pay my utilities. Also to increase my revenue I could rent out my space to another company who may need it and I would get a percentage. I could also create a saving account in the bank so that I am able to get interest to increase my profit. To decrease costs I could also not hire as many workers as my business is a small company and this will save money so instead of hiring part time I can hire full time also to increase my costs on some of my bills such as the internet and telephone I can find the cheapest deal.
In my business if I am unable to control my costs I would