My last blog (link) highlighted Sales per Product as the starting point for budgeting. The next step is to identify the ‘cost of goods sold’ per product.
This is vital, as they are all different, but so many businesses combine them all, which conceals the true profit or loss of each. So, I investigate the costs of materials, time, storage and distribution for goods and services and then apply common sense to what I hear and see. I then highlight the results to you, the business owner, with recommendations for costs and pricing.
These become this year’s total direct costs.
Meanwhile, if you don’t have an FD, call me. I’m a fraction of the cost, and I work on the basis that every £1 you invest in me delivers at least a £3 return.
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