Profit calculator for small businesses
There’s a lot that goes into running a successful business: You should know best practices to hire the right employees and have basic knowledge of business management strategies. But the thing that trumps everything else when it comes to succeeding in business is profitability. Do you have positive cash flow? Are you out of the red and into the black? These are questions that can keep a business owner up at night.
Fortunately, there’s an easy way to find out the number of sales your business needs to break even or turn a profit. This profit calculator will help you understand your margins on products and services. Based on that information, it will give you an estimate of the minimum number of sales you need to reach your goals.
Here’s how to use our profit calculator
1. Enter some basic information about your business, such as the type of industry you’re in.
2. Add your unit of sales and how many customers you serve on average.
3. Include info about any investments you’ve made into your business and start-up costs like furniture or loans.
4. Tell us about the cost of materials and how much you sell your products or services for.
5. Lastly, input info about your fixed and variable costs.
The calculator will provide you with downloadable results to help you reach you goals. Pretty easy, right?
Knowing your financials and having good cash flow is just part of the equation when it comes to growing and protecting your business. The next step after using the profit calculator is to research the types of business insurance options out there. Or, you can start a quote, and Hiscox will suggest coverage options for you.