Business Plan Math Flashcards
The cumulative volume at which you begin to make a net profit.
Breakeven volume
A document outlining your monthly expenses
Budget
Costs that include labor and materials.
Direct Costs
A 3–5 year forecast of your income and expenses, profits and losses, and so on.
Financial Model
The actual dollars you put in your pocket before taxes, meaning that your net profit will be less than your gross profit
Gross Profit
The rate at which the business grows or increases revenue from sales.
Growth Percentage
Costs such as equipment.
Fixed Costs
Costs such as utilities and rent.
Indirect Costs
A philosophy of starting a company in which you spend only money that is absolutely necessary at each point in time.
Lean Startup
The actual dollars you put in your pocket after taxes, meaning that your net profit will be less than your gross profit.
Net Profit
The nonnegotiable costs involved in starting a business, including license fees.
One time costs
The value attached to your product or services by your potential and actual customers.
Perceived Value
Ongoing monthly business costs, like rent or insurance.
Recurring Costs
Income from sales of your product or service.
Revenue
The total cost required to start and operate your business for a certain period of time (typically 6 months).
Startup Costs
