Financial analysis of small business

Abstract

The purpose of this article is to provide cost analysis tools and help you perform “what-if” calculations. We will look at price because there are many business people who don’t have a thorough understanding of what the price of their work is, the price of their products, or the cost of their labor. Even with all the emphasis on the value of pricing in this article, costs are the foundation on which prices are built. Once the businessman has mastered pricing, he will only be able to use mathematical rules to decide whether to raise or lower the price. From now on, there is a natural development of the way business is viewed, namely by “probability and profit” to achieve the set goal – profit. This is called quite often – a predetermined profitability. It is built on the assumption that business exists to generate profit.