Setting prices is challenging. The amount of profit you make depends to a great extent on the prices you charge, so getting the price right is vital to your business success. This section highlights the difference between costs, price and value and how it affects your profit.
In order for your business to survive, you need to have enough money to cover all your start-up costs, the costs of running the business and also for you to live on. This section looks at how to determine your personal survival budget.
The first step in setting prices it to establish your costs. This section helps you understand the different types of costs involved in setting up and running your business.
Now that you’ve identified what it costs to start and run your business, you can work out the cost of producing your product or providing your service. This section takes you through the process of costing your product, costing your service or costing for retail.
Pricing is a complex area. Set your prices too high and you may lose the sale. Set them too low, and you leave money on the table. This section looks at the different ways to arrive at your price and the different pricing tactics you may consider.
It can be a number of months before a new business is profitable and generating a cash surplus. You may need alternative sources of income during this period, if only to cover your outgoings. If your business does make a profit, you may want to re-invest it to help your business develop.
Working out where to go to find finance and choosing the right type can be tricky. Our finance area is here to help.