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budget of loosing business

Discussion in 'General Business' started by ottodo, Dec 11, 2006.

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  1. #1
    Ok,
    Of course everyone has his own business offline/online, and of course there should be budget of loosing the business, but iI dont know how mch it should be.

    is it fixed for instance 10%, 20%??
    is it out of profit?

    this is really important.
    I think th minimum should be 15% of profit, where you can start new business...

    what do you think?
     
    ottodo, Dec 11, 2006 IP
  2. george75

    george75 Peon

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    #2
    I have no idea what you have just asked.
     
    george75, Dec 11, 2006 IP
  3. MattKNC

    MattKNC Peon

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    #3
    Ditto! Are you trying to figure how much you can make relative to sales or the amount of profit you should make in order to be viable?
     
    MattKNC, Dec 11, 2006 IP
  4. nicuz

    nicuz Peon

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    #4
    I don't get the question.
     
    nicuz, Dec 11, 2006 IP
  5. drig

    drig Peon

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    #5
    When your business can no longer cover its VARIABLE, is when you shut down. Cover variable before fixed costs. (Economics was a little while ago, so if I've switched it around, please let me know). I hope this answered your question.
     
    drig, Dec 12, 2006 IP
  6. kelouba

    kelouba Peon

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    #6
    I think if you have your finger on the button you should recognise that your business is not performing, and should either do something about, it or pull the plug, long before you reach 15%.
     
    kelouba, Dec 12, 2006 IP
  7. tke71709

    tke71709 Peon

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    #7
    From an economics perspective you hit the nail right on the head.

    The nice thing about Internet businesses is that the fixed costs are generally so low.
     
    tke71709, Dec 13, 2006 IP