Turnover

What is Turnover?

Hey there! Have you ever heard the word "turnover" and thought it sounded really complex? Don’t worry! We’re going to break it down in a super simple way. Think of turnover as the total amount of money your business makes in a set period, usually a year. It’s like counting all the pocket money you earned from doing chores!

Why is Turnover Important?

Turnover tells you a lot about how well a business is doing. If your turnover is high, it means you’re selling a lot of products or services. But if it’s low, it might be time to tweak your strategies or promote your business more. Here's a quick table to help you understand:

High Turnover	Low Turnover
Selling more products	Not selling enough
More money coming in	Less money coming in
Good sign of growth	Needs improvement

How is Turnover Calculated?

Calculating turnover is super easy! Just add up all your sales before any costs, like taxes or expenses. Here’s a simple example:

If you sold 100 items at £10 each, your turnover would be:
100 items x £10 = £1,000

So, your turnover is £1,000! Easy, right?

What’s the Difference Between Turnover and Profit?

It's important to know that turnover is different from profit. Turnover is all about how much money comes in, while profit is what’s left after you’ve paid for everything else (like materials, rent, and staff). Think about it this way:

Turnover: Total money made from sales.
Profit: Money you keep after costs.

In Conclusion