Plan B turnover amount?

[JamJarST]

Why is everyone confusing gross profit with turnover? We don't know what Plan B does - if its selling widgets with a 10% markup you can multiply that turnover by 10 to achieve suffieicnt profit to pay the wages. As others have said, check what sort of yurnover is achievable with a staff of 4, rather tha working out to pay the wages.

Because the OP implied that turnover was all margin.

[Spoiler]

Why is everyone confusing gross profit with turnover?.

I believe you make a good point. I am trying to work out potential costs to ensure we can create enough margin to make it viable. So I think I should really be interested in the gross margin (profit?), not necessarily total turnover. Some services we sell will have a much better margin than others.

You see - this is all good. I'm learning the basics here (hopefully) so I won't sound completely clueless when I speak to accountants.

[JamJarST]

I believe you make a good point. I am trying to work out potential costs to ensure we can create enough margin to make it viable. So I think I should really be interested in the gross margin (profit?), not necessarily total turnover. Some services we sell will have a much better margin than others.

You see - this is all good. I'm learning the basics here (hopefully) so I won't sound completely clueless when I speak to accountants.

Gross margin is not profit. Are you the most accounting savvy of the four? If you are going into business it is well worth learning basic accounting principals especially if you need to meet with potential incvestors or the bank.

[Spoiler]

Are you the most accounting savvy of the four?

Probably not, but I'm the one who had a free day today to do some research. Would also explain why I've included fees for accountant & bookkeeper in potential costs.

[Spoiler]

Quick search: "Margin is measured as ratio, profit as an amount -- in both cases, they measure the difference between cost of materials and revenue. Gross margin/profit do not consider the cost of doing business (ie. payroll, taxes, etc)".

So, what's the technical term for the stuff I'm looking to cost then, i.e. salary, fees, tax, etc? Then I think I'd get something like:

Revenue - cost of materials - "the cost of stuff I'm working out" = profit (£).

[Clare@InTouch]

Quick search: "Margin is measured as ratio, profit as an amount -- in both cases, they measure the difference between cost of materials and revenue. Gross margin/profit do not consider the cost of doing business (ie. payroll, taxes, etc)".

So, what's the technical term for the stuff I'm looking to cost then, i.e. salary, fees, tax, etc? Then I think I'd get something like:

Revenue - cost of materials - "the cost of stuff I'm working out" = profit (£).

Expenses/Admin Expenses

[Spoiler]

Expenses/Admin Expenses

Thanks again!

[ASB]

Quick search: "Margin is measured as ratio, profit as an amount -- in both cases, they measure the difference between cost of materials and revenue. Gross margin/profit do not consider the cost of doing business (ie. payroll, taxes, etc)".

So, what's the technical term for the stuff I'm looking to cost then, i.e. salary, fees, tax, etc? Then I think I'd get something like:

Revenue - cost of materials - "the cost of stuff I'm working out" = profit (£).

Take your pick.

Expenses
Overhead

Though a possibly correct term would be "cost of sales". But that wouldn't fit in with what you have above since you have already excluded raw material cost.