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This document discusses the costs involved in starting a new business, including fixed costs like administration and monthly expenses, variable costs associated with production and distribution, and the importance of accounting tools like cash flow and balance sheets. It notes that to break even, a business needs to sell enough units so that the monthly fixed costs are covered by the profits from sales, which in this example would be selling at least 1,000 units per month.
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Finance
- 2. Start Up capital
- 13. Costs
- 15. Production
- 16. Distribution
- 17. Administration
- 19. Variable Costs
- 20. Fixed Costs
- 21. Accounting Tools
- 22. Cash flow
- 23. “Lack of profit is like a cancer, but lack of cash is like a heart attack”
- 25. Balance Sheet
- 28. ___________ Monthly Fixed Costs (Price-Variable Costs Per Unit)
- 30. That means you need to sell at least 1,000 units so you neither win nor loose money