Being an entrepreneur like Luke Skywalker (or Count Dooku — rest in peace, Mr. Lee) working for yourself can bring a whole host of benefits – better well-being, better business hours, and being happy in what you do are the positive sides to entrepreneurship along with wielding your trusty light saber. But what usually comes with working for yourself and running your own business are the financial reports and data that most of us just don’t like to decipher, leading us to financial peril.

Profit & Loss

Profit and loss are a given in business, yet there are many entrepreneurs out there who don’t even look atP&L statements Yoda their statements, thinking a Jedi mind trick would, well, do the trick. Understanding the language of P&L statements is actually quite straightforward even from a business bookkeeping aspect:

Sales – Costs = Profit

There are sometimes different versions of these words, but the formula is still the same. Sales, revenue, or income will be at the top of your statement; cost or expense, somewhere in the middle; and profit, or net income, will be the final profit sum at the end of your statement.

Working Out Subtotals

You may see columns in your P&L statement such as a breakdown as to where your costs and sales come from. For example, if you own a car rental business, you may have three separate sales statements; one each for small cars, family cars, and SUVs.

Costs may also be broken down in similar ways. In the case of a car rental company, you may wish to breakdown your costs for car hire, maintenance, and staff or building upkeep. It doesn’t matter how you break down your sales and costs, because these always add up to total sales and total costs. A breakdown of these can help you to analyze where you gain the most or least profit, so that you can then fix or maximize that particular product, cost or service.

A Mathematician, You Do Not Have to Be

So says Yoda. Once you take a section of your P&L statement and look further into what it really means, profit and loss statements need not be so complicated. Just remember that sales, minus cost, equals profit. The more sales you create, the larger your profit. The more cost you incur, the more likely you will make less profit. Now may the Force be with you.

Nothing ‘Micro’ About #Crowdfunding #MicroVentures Just how big is the #business  #startup crowd…

Posted by wpadmin | Posted in Finances, Taxes | Posted on 23-01-2016

Tagged Under : , ,

Nothing ‘Micro’ About #Crowdfunding #MicroVentures

Just how big is the #business  #startup crowdfunding for this 'little' platform? Pretty big. MicroVentures back in 2009 became one of those business crowdfunding companies famous for launching capital funds from both accredited and nonaccredited investors for one OTHER little startup of a business beast — you guessed it, FACEBOOK.

It certainly helps that MicroVentures happens to focus on businesses in the software, mobile, media, entertainment, social, gaming and green-tech industries, so Facebook definitely had fit right in. And the budget to raise can be anywhere between the $150K to $1MM range. Not too bad.

What does this tell you? If you're thinking about starting up a new business and need some venture capital to get it off the ground running, MicroVentures might be a great possibility for you!

5 Kickstarter Alternatives for Business Startup Crowdfunding

Don’t get us wrong; we love Kickstarter for crowdfunding. But when it comes to business startup crowdfunding, we need something more corporate focused.

The post Nothing ‘Micro’ About #Crowdfunding #MicroVentures Just how big is the #business  #startup crowd… appeared first on Cloud Based Bookkeeping.

Post your comment

You must be logged in to post a comment.