Costing for Profit

[Dave A]

I ran consulting business. And i can say undoubtedly that experienced people will hopefully come around with advice, but this is what I do.... i mean i kind of advise them and they consult with me about their financial as well as business problems so that i can give them efficient and the techniques that can really cause an impact on his business..

Great - you reckon you're an expert. So what is your advice in this situation?

[Blurock]

Abdi, there is valuable advice given by members on this post. Make sure that you understand the difference between mark up and profit as explained by Adrian.

Also look at the tools provided by Ian. Important is your break even analysis. This can be calculated as a contribution margin or equation method, which I am not going to explain here. Basically you need to know how many units you need to sell to meet your commitments before you start making a profit.

[wynn]

Basically you need to know how many units you need to sell to meet your commitments before you start making a profit.

This is referred to as the "NUT" in another thread, http://www.theforumsa.co.za/forums/s...eas?highlight= the amount you need to make every month, week, day, hour to break even at the end on any given period.
A 40 hour 5 day week is good but most solopreneurs wind up working a 112 hour week, calculate your 'nut' on a 40 hour week and if you wind up working more? great!