Reality

I have realized that nowadays people need money, we try to find ways to earn money.We patiently look for a job that is suited for us.But it is do hard to find these days, in fact one of our country's biggest problem is unemployment.Each year thousands of fresh college graduates are adding up to the number of unemployed people.Not only that most of the people that are employed are what we called under employed. Under employed means that one's job is not suited for him/he or not related to their course,like for example: Mari is a graduate of nursing but her job is being a call center agent. Another situation is many filipinos are working abroad, they are what we called overseas filipino workers (OFW).They sacrifice by being away from their love ones. They are miles and miles away without anyone they know to comfort them.Also they risking their lives, like what we always hear in the news that many OFW's are being beaten up.Because of those situations our government is encouraging us to put up our own business. Putting up a business is very accessible to us all. You can hear about it in the televisions, radios, through other people. You can also read about it in the news paper, fliers etc. Even the government are offering free workshops so that you can start it on own. Having a business is both easy and hard. If you like your business it is easy for you to manage it, if you think of it as a burden then it is really hard. Starting a business for in my is easy if you know the basics. If you enter it you must know what business math is because it is the key to the success of you business. Because it will help you to manage your earnings.


I have learned from my professor in my business math subject that in managing your business you must know this terminologies:
Profit- amount were sales are greater than the cost of goods sold and the operating expenses.

Net sales - Obtained when refunds are deducted from the gross sales.

Gross sales - Actual amount received for selling the goods.

Refunds - Amounts that are given back to the customers if the product is defective.

Gross profit- The difference between net sales and the cost of goods sold.

Cost of Goods Sold/Buying Price - The amount paid for the products bought including the buying  and production expenses.

these terminologies will guide you into this formulas that will help you track  your money whether your business earning or flopping. 

 net sales - cost of goods = gross profit                  

 gross profit – operating expenses = net profit

 gross sales – refunds = net sales

 net sales – cost of goods = gross profit

 gross profit – operating expenses =  net profit

You may think that it is hard because it has math, but you can't escape math to be a successful entrepreneur you must face lots of computations. It really shows that math is like a black hole whatever you d you cant escape it.