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Re: Thinking of opening a business
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Re: Thinking of opening a business
if u workon 5% u will be bust in a month
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Re: Thinking of opening a business
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Re: Thinking of opening a business
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mother in law used to own the fruit and veg shop that is now the reena's restaurant and she made an ok living, nothing major and had to work long hours though. ive always thought a good computer game shop that offers game trade ins would do well at the top end of ossy, nothing flash mind keep overheads as low as you can. think start up costs could be a problem though |
Re: Thinking of opening a business
Where on earth can you make 100 - 200% on food??? That is impossible. If you are talking about selling something at retail at twice the cost price then that is 50% ie cost price £1 and sell for £2 is 50% gp. You can never make 100% profit unless you have no costs involved in producing what you sell!!!
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Re: Thinking of opening a business
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£1 against £2 is 100% on cost and 50% on retail. That is the fist sum you must do before calculating expenses. How miuch can I make and what will it cost me? That is cost of sales. Not an easy task and advice is needed. 100% is not possible whatever the situation. |
Re: Thinking of opening a business
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Re: Thinking of opening a business
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Of the first three hits when googling for "profit calculator" two of them calculate it the way you've done it (profit as a percentage of selling price), and one calculates it the way Derek (and I) calculate it (profit as a percentage of material/labour costs). Funnily enough, the calculator on the fourth link doesn't work, which doesn't bode well for the accountancy firm on whose site it appears. |
Re: Thinking of opening a business
I've always fancied a fishmonger would do well on Union Rd. All those good catholics in Ossy wanting fresh fish on friday. :D
But what you also want to consider is using a shop as a front but finding something that is specialist on the internet for mail order. A good example is the second hand book shop - they actually do the majority of their business online but if you need a storage place for books you might as well have them in a shop so you get some passing trade as well. That way you're not reliant on business in Ossy, or even within 5miles for that matter. |
Re: Thinking of opening a business
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Re: Thinking of opening a business
Thats in answer to a previous thread on this post stating you make 100-200% on food. If you do a business plan then of course its relevant. You have to calculate your GP and Net Profit.. So of course you have to deduct the cost of buying/making the product from your retail price hence the true GP figure. go to a bank and tell them you expect to make 200% GP and you will be shown the door, There is no such thing as 100% GP (or anythin in excess of) - its impossible
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Re: Thinking of opening a business
So, if you buy a box of ten (anything) for £100, then sell them for £110 each, you havnt made more than 100% profit over your original costs?
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Re: Thinking of opening a business
It depends on the base of your calculation. With your example, it depends whether you use the £10 cost price or the £110 sale price as your starting point. The way you and I work it out, it's a 1,000% profit, because the sale price of eleven times the cost price means a profit margin ten times the cost price.
With Bobs base of the selling price for profit calculation, the base price is 9% of the cost price meaning the profit is 91% There is no "right" or "wrong" answer, but it does illustrate the need to understand how any given statistic is calculated. |
Re: Thinking of opening a business
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In his example he said his original cost price was £100, not £10. |
Re: Thinking of opening a business
I understand that Gareth, my point was, there are more ways to work out the figures, and I am not so blinkered as to think that the way I work them is the only way, but the bank manager would not throw you out based on those figures! Calculating the figures as I stated originally would result in good, base cost profits, it is well known that, with food, these are the margins many would, and do, use! I didnt intend for it to be a lesson in accounting, just a pointer that was understandable to anyone without the knowledge.
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