Just started a new business - need help with the math?

[rizki2135]

hello i am a highschool student from indonesia and i am very bad at math, i just start a small business a chips business, i make eel chips, lung chips, and etc. but i stuck on problem now because i cant manage how much i must put price and pay people.

i have hard time to make calculation of how much i must pay people and make the price of my chips can someone give me formula to calculate it or apps or something because i afraid to lose all my profit and fall down and cant start again because my fool and afraid too make my parent in shame because they gave me capital and i dont want to make them have dejected looking on my face .

so please if you can help me to give formula like:
~if i want make profit 20% from my chips?
~how to pay people from my profit one month maybe?
~how to calculate the capital like spending money from gas and everything else, like to calculate if i make profit or a loss for a month? from paying people promotion buy the basic ingridient and etc
~and if you can give me advice i'll glad to make my business grow i would like hear it?

 

[Adam Toren]

hello i am a highschool student from indonesia and i am very bad at math, i just start a small business a chips business, i make eel chips, lung chips, and etc. but i stuck on problem now because i cant manage how much i must put price and pay people.

i have hard time to make calculation of how much i must pay people and make the price of my chips can someone give me formula to calculate it or apps or something because i afraid to lose all my profit and fall down and cant start again because my fool and afraid too make my parent in shame because they gave me capital and i dont want to make them have dejected looking on my face .

so please if you can help me to give formula like:
~if i want make profit 20% from my chips?
~how to pay people from my profit one month maybe?
~how to calculate the capital like spending money from gas and everything else, like to calculate if i make profit or a loss for a month? from paying people promotion buy the basic ingredient and etc
~and if you can give me advice i'll glad to make my business grow i would like hear it?

Congrats on startup up your new chip business in Indonesia.
I think you might be looking for a startup calculator.

Here is one that should be a great starting point:

Startup Calculator - Wsj.com

 

[Gordan]

You need to make take into consideration 2 types of cost: fixed and variable

Fixed cost: they occur one time. Things like owen for making chips, rent for business space for first several months, utilities, legal costs, equipment for producing chips, salary for several months, ... Write these down and sum it up.

Variable costs: they occur every time when you make one bag of chips. They are related for every single bag of chips you make. As the number of produced bags of chips increases, so does variable cost increases. Example of variable costs can be fish, lung parts, oil, plastic or paper bags, etc... When summing these up, take a 100 bags of chips as sale result - calculate how much of money you need to spend so you can produce 100 bags of chips, but (and this is crucial) without fixed costs.

There is more on this, it's just a start so let me know if this makes sense to you...

Oh, and get better at math... I've never met entrepreneur who is bad at math.

 

[djbaxter]

As the number of produced bags of chips increases, so does variable cost increases.

But the cost per bag should decrease if you're doing it correctly. right?

 

[Gordan]

But the cost per bag should decrease if you're doing it correctly. right?

Of course, in a real world... I've shaped this to simplify explanation between fixed and variable cost.

As the number of bags produced is increasing, total cost will increase too but at slower rate. The more money he spends on "materials" used in production process, the grater discount can be arranged with suppliers... So cost per unit (bag) will decrease