what if you are a business owner. How do you attract investors so that your business will grow and progress? Of course, you will apply the right ways so that the three important points above are fulfilled, especially the third point which is visually written as a projection in numbers.

Is it that important to make a business profit analysis? Clear! No matter how close or trusted your relationship with potential investors is, they need written financial data to see that your business is worthy of funding. In addition, business profit analysis is also useful for yourself. With business profit analysis, you can evaluate whether your business is running well or vice versa (a waste of money).

The Business Has Prospects

Prospect is not only a matter of profit. It could be that the business has not made significant profits because it has only been running for a few days, but you judge if the business has prospects (the product is unique, is in demand or accepted by consumers, the price is affordable, the business is on the rise, and so on).

The Credibility of the Manager is Good

Another consideration why you want to invest in the business is because you already know the credibility of the business owner who could be someone you know very well. Business relationships need trust. To build https://dev.page/redmitoto it takes time or a process, it can't be instant in just a day or two, let alone a few hours. That's why investing in business owners that you can guarantee the quality because you already know the taste is quite logical, yes.

Neat Business Profit Analysis

We will discuss this point further here. When it comes to business, what is the first thing that comes to your mind? Definitely profit or money. Business is always related to how to make money. That's why, it seems impossible that you will "entrust" your money to https://doselect.com/@dauntogel a business owner who has sloppy financial reports or does not have a convincing business profit analysis.

It is possible that the profit sharing will be wrong later because of the lack of this neatness factor. From this, you as an investor can assess what kind of business you are financing: healthy or not?

How to Make a Business Profit Analysis?

If at this time your business is still running or in the sense that it hasn't been running in a matter of years or even just wants to operate (just waiting for the funds), then you can make a business profit analysis using the BEP or break event point approach. Break event point is https://prolific.bio/jbl4d defined as a break-even condition or no profit or no loss. Or simply put, the total cost you spend is the same as the total income you get. They often say return on investment.

Another factor that can also be obtained from this information is whether the price of IDR 10,000 is acceptable to consumers (not too cheap/expensive) or what is the maximum price that can be set in order to get optimal profit, also considering that if you set the price too high will be lonely and in the end even profit can not be achieved.

The example above is if your business has just been established / is just about to start operating / has only been operating for a few days. Then, what if your business has been running for years and you need investors to develop your business so that it can be even bigger? Of course, analyzing the business benefits that you provide to investors is a bit more complex.

Financial Data Needed for Investors

Financial statements are records of financial information over a certain period of time. Since your business has been running for some time, you must have financial reports. From there, investors see what the quality of https://fatek.unsrat.ac.id/informatika/?bbp_user=115834 is your business looks like. Eligible or not to be funded. It will be even more convincing when you also have an “unqualified” auditor opinion, which means your business is in a very healthy condition.

In simple terms, return on investment or what is often referred to as ROI is the percentage of income or profit from the total investment invested. Of course, the higher the percentage, the higher the ROI, which means the better because it turns out that the investment made provides a large level of profit. It's the other way around.

providing an analysis of business profits is still mandatory as a form of your accountability to them as well as showing that your business is indeed professional even though the scale may not be too big.