Basic Business Maths
In business you don’t need to be a mathematical genius but there are certain things you certainly need to know for basic business maths. We live in the age of the calculator which certainly makes life easier but you still need to understand some business maths to be successful as the calculator only uses what you put into it.
Basic Business Maths – Adding up
Business maths is mainly about adding, subtracting, dividing and working out percentages. Every business owner should know their costs in order to make sure that they are going to make a profit.
The Cake mix of Basic Business Maths
For example if you make something like a cake you will need to work out the cost of the ingredients, the cost of the labour involved, wastage and your overall operating costs such as heating, lighting, administration and advertising. How many cakes will you have to produce to cover all of your costs before you make a profit? These are numbers that you need to know.
So many business owners do not know their numbers until quite often their annual accounts give them a nasty surprise.