Becoming an Entrepreneur is a great idea. In fact Entrepreneurs help every nation's economy grow through job creation and revenue generation.
Finance basics for startups
Even if you are an established Entrepreneur, there is no harm in learning.
Entrepreneurship
Entrepreneurs are the heroes of every nation. That said, as an Entrepreneur, you have to understand the basics that will give you a good foundation.
The basic finance concepts discussed below, have been ignored by budding Entrepreneurs, to their detriment.
1. Startup Cost: Your Start-up cost is the initial expenditure needed to get a business running.
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An example of start-up cost could be a make-up artist who wants to start a make-up outfit and needs N50,000 for make-up kits.
2. Fixed Cost: This is a cost that does not change whether there is production or not. Fixed costs are expenses that are made independent of any business activity.
It is one of the factors that determine your product or service price.
An example of a fixed cost could be your office rent. You still pay your rent, even if you carry out business or not.
3. Variable Cost: This is the expenses made in the process of the production of the goods. It is dependent on the volume of production.
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