Finance in Plain Language

A blog for entrepreneurs who want to stay in control of their business finances. Here you'll find clear explanations of financial management, real-life case studies, practical insights, relevant news, and step-by-step guides.

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Service centre: the work nobody pays for

The manufacturer pays 480 ₴ per warranty case; the technician spends 2.4 hours worth 624 ₴. With 640 no-fault diagnostics on top, the centre gives away 614 400 ₴ a year — 1.56 times its entire annual profit of 395 040 ₴.

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Timber kiln: their wood or yours

The same kiln returns 871 200 ₴ on tolling with no capital at all, or 6 573 600 ₴ on your own timber with 15 768 000 ₴ tied up. The margin inside the dried price is 10.7%, so an 8.23% drop already turns the year into a loss.

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Customs broker: the price of one mistake

A declaration earns 2 800 ₴; four mistakes a year cost 375 000 ₴, or 250 ₴ on every one of 1 500 declarations. The worst one took 144 400 ₴ — five years of that client's contribution. A second declarant costs more than all the mistakes combined.

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Main contractor: profit that is not in the bank

Turnover of 47 600 000 ₴ produced 4 290 000 ₴ of net profit — and 3 740 000 ₴ of it sits with clients. That is 87.2% of what was earned. In hand: 550 000 ₴, while the loan covering the gap costs 560 000 ₴ a year — more than the whole of it.

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Microfinance: profit that has not happened yet

Interest accrued was 7 776 000 ₴; 7 205 760 ₴ came in. Calendar write-offs this year are 220 loans, but the vintage holds 264: doubling new lending overstated net profit by 343 200 ₴, or 29.8%. Tighter scoring would cost another 133 932 ₴.

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Data centre: the kilowatt nobody pays for

Clients in 29 racks draw 101.5 kW, but the data centre buys 152.25 kW. Nobody bills the 50.75 kW of overhead, so reselling power at a 0.9 ₴ markup leaves a 1 511 538 ₴ hole — 2.9 times the annual net profit. Break-even is 7.8 ₴, not 6.1 ₴.

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Insurance agency: where the profit really is

A new policy brings 1 600 ₴ of contribution once; a renewal brings 1 400 ₴ every year. A client stays 3.125 years and is worth 4 575 ₴, of which 2 975 ₴ comes from renewals. Revenue grew while the portfolio lost 92 policies, and no report showed it.

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Billboards: the sites that run at a loss

Forty sites, 480 site-months, 313 sold. A central board returns 124 600 ₴ a year, an outlying one takes 27 500 ₴, and twelve of them eat 330 000 ₴. Removing them gains only 18 000 ₴: the package clients would take the centre with them.

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Cannery: a year of buying inside six weeks

Tomatoes run for six weeks; the paste sells for twelve months. The plant puts 14 400 000 ₴ into that window and keeps 9 792 000 ₴ sitting on pallets — 2.6 times its annual net profit. Buying out of season cost 2 340 000 ₴ where a loan asked 384 000 ₴.

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17 min

03.11.2026