To do this you must have a spreadsheet

mdsohanuzzaman1

Furthermore, if your business is listed on the stock market, profitability will help you improve your image with potential investors . How do you know if your business is profitable? Determining if your business is profitable is essential and could make the difference between one strategy or another. Basically, a business is profitable when it starts and the initial investment is recovered, since from then on you will work exclusively with working capital. Therefore, it is essential to measure the time it has taken to recover that investment, also known as the break-even point .

All the profits the business makes could be called profitability and the partner can Cambodia Phone Number Data  distribute it or reinvest it to expand operations. In this sense, it is necessary to take these elements into account to determine the profitability of your company : 1. Calculate the money invested in the initial phase of the business Determining how much you have invested is the first step to calculating the profitability of a business. where you write down the total of everything you have invested, whether in raw materials, personnel, suppliers.




.. 2. Calculate the company's net profit Subsequently, you must calculate the profit from the company's operations up to that point. For this you will only have to take out the difference between income and expenses, so if you have a positive number it means that the business is profitable. 3. Analyze the results TEST How much do you know about business? Tools, concepts, business methodologies... Test yourself with this test! (it won't take you more than 3 minutes) Take the test! FREE classes What would it be like to take one of our master's degrees? The best thing is that you try it yourself with these totally FREE classes! Sign up and live the experience of being part of the business school that has put the traditional educational model in check.