Business Finances is an interest topic. In the small business community just like
the corporate world, there are number crunchers who make decisions based on facts
and there are those who rather make decisions based on gut feel.
Although both types of decision makers have been successful, trying to make gut feel
decisions for an importing business can be challenging without knowing the facts.
The inflows and outflows of cash can be a nightmare to keep track of.
The basic concepts represented here will help you become a smarter small business
owner or operator whether you import from China or from any other country.
Business Start Up Costs
Prior to starting an importing business, you'll need to sit down and figure out what
are all your your Business Start Up Costs. How much will it take for you to launch
this small import business? This is critical because it will tell you how much funds
After you make contact in China, you will need to calculate how much you are going
to charge or Price import to make a profit. What is the optional price point to
sell your import goods?
Gross Profit Margins
As your business begins to generate revenue, you need to understand what are your
Gross Profit Margins for your line of import from China goods. This is the money
left over when you subtract your costs from your sales. The ability of a small business
to profitably generate revenue is the key to long term survival. No matter how
much revenue is generated, if it is not done profitably, the small business can quickly
go out of business.
When your business grows even further, you will need to make decisions on the right
time to add equipment and other supplies. An analysis will let you know your point
of Business Break Even and assist in making these critical business decisions. It
determines how long it will take for your business to recoup the cost of the investment.
You will also need to control your business finances through the
creation of a Business Financial Budget either on an annual, biannual and or quarterly
basis. Similar to a personal budget, the Business Financial budget will allow you
set goals and monitor the progress of your business finances.
Learning these basic concepts will help you manage and grow your Business Finances.
It will ensure that you will become successful in this exciting world of importing