Then, you must ask me why?
The answer is simple, because people who open stores lack awe of finance and a correct attitude towards finance.
In fact, like most people, you and I used to think that the business of tea shops was very good, and many people bought them every day, especially milk tea, which was the favorite of young people. I used to think that opening a tea shop would not lose money.
But it was not until I read Ma Jin's "The Secret of Yangjiao Accountant Opening a Shop for Financial Experts" that I realized that opening a tea shop was not as glamorous as we saw. In fact, the boss behind it may worry about losing money every day.
Mazin is a senior chartered accountant in Britain and a columnist of Forbes China. He once worked for Deloitte, and was one of the earliest professionals engaged in the compliance and risk management services of Saban private law cases.
Through talking with his mother, he told us what to pay attention to when opening a shop and how to make money.
Xiang Zeng, the chief accountant of Union Medical College Hospital, commented that Ma Jin accurately and completely expressed obscure professional knowledge in easy-to-understand language, so that every layman could read it happily and understand its essence.
Therefore, since its publication in March this year, this book has sold 654.38+million copies.
In fact, most self-employed people are concentrated in the post-95 s and post-00 s, because they are unwilling to work under others, or they have realized that working alone can not give them the life they want.
At the same time, I think I have the ability and ambition to do a good job. So, I chose to start my own business. But it wasn't long before I suddenly found out that the more money I earned, the more I thought about it. Start worrying every night. Why do you want to change it? What can you do?
In fact, the less money we earn, the more because we ignore finance, lack respect for finance, and lack a correct attitude towards finance.
So what should we do to get out of the current predicament, or what should we pay attention to when opening a shop, and how can we make money?
We all know that opening a shop requires cost, and the cost is not low, so we should borrow money from friends, parents and even banks. Then we are in debt, and then we need to understand the first secret.
Before sharing, I want to ask you a question. Debt is easy to understand. Simply put, it is to owe money to others. Then what is an asset?
Maybe you will say that your deposit is an asset, but what I want to tell you is not all right. You certainly don't think that debt is actually part of your assets. At the same time, assets also include the rights and interests enjoyed by those who invest in you.
Why do you say that? Because as long as the person who invests in you belongs to the shareholders, then the rights and interests are the right to use the shareholders' rights-the right to control the net assets of the store you opened.
To sum up, initial assets = liabilities+owners' equity. However, with the purchase of equipment and materials, the rental and decoration of the facade, etc. The money used will also be included in your assets.
Now that we understand the assets and liabilities, we need the second and most important secret-how to open a shop to make money.
In this book, the author tells us that costs are divided into variable costs and fixed costs.
The simple understanding of variable cost is the cost that can change with the output. The more products produced, the higher the variable cost. For example, the raw materials we buy, the wages of the workers we hire and so on. Fixed costs are the equipment we buy and lease.
You may not understand the connection between fixed costs and variable costs. Let me give you a simple example.
If you like coffee very much, then buy yourself a coffee machine. With the coffee machine, we need to buy coffee beans. In this example, the coffee machine has a fixed cost, and the purchased coffee beans have a variable cost.
After knowing what cost is, we need to know the cost price of each product. We all know that the selling price must be higher than the cost price to make money.
In other words, the sum of the cost prices of all products is the card in our hands. Shoppers must know what their cards are.
Product price-cost price = profit, and the profit we set is not arbitrary. Why do you say that? Because we need to spread the cost of hiring workers, decoration costs, equipment costs and so on equally to each product.
After talking about cost, let's take a look at what is marginal contribution.
Simply put, marginal contribution is a relationship between sales revenue and variable cost. When the sales revenue is greater than the variable cost, the marginal contribution, that is, profit, is generated.
On the contrary, when the sales revenue is equal to or less than the variable cost, we will not make a profit and have no marginal contribution. In order to help you deepen your impression, I attach a picture to you, as shown below.
Therefore, only by figuring out the cost and marginal contribution needed to open a shop can we not panic when opening a shop. Even if you encounter any problems, you won't lose money by opening a shop.
To sum up, if you want to open a shop to make money, you need to master two secrets: 1. Only by cleaning up assets and liabilities can we conquer the world; 2. Knowing the cost and marginal contribution is the beginning of making money.
By reading this book, we can understand the author's intention. Ma Jin hopes to help people who want to open a shop to make money quickly understand the subject of accounting and realize its importance through simple and clear language.
Just like the author's title "Accounting and Croissants", although both accounting and croissants look ordinary, as long as you try to take a bite, you will find it interesting and delicious.