Finance 💰
Give one example of one time fee
permits, legal fees, equipment, etc
Name one risk a business might face
competition, supply issues, change in trends, etc
What is direct distribution?
What is the difference between revenue and profit?
Revenue = total; profit = after costs
What are fixed vs variable costs?
Fixed stay the same; variable change with sales
New business opens in your industry→ what risk?
Competition
What is indirect distribution?
Use middleman (retailer)
What happens if costs increase but prices stay the same?
Profit decreases
Rent and insurance are examples of
Fixed cost
Place you get material from raises prices → what risk?
supply chain
Selling only Etsy is typically....
direct
Why is a break-even point important?
Shows when profit starts
What is the formula for break-even?
Total Fixed Costs / (Selling Price Per Unit - Variable Cost Per Unit)
What is a contingency plan?
backup plan
What type of cost is ingrediants?
variable