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.

Case Studies

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Commercial letting: 18.42% on paper, 5.26% in fact

Andrii worked out the yield of his complex off the price list and full occupancy — 18.42% on the 52 million invested. The net figure is 5.26%. Five tenant changeovers a year cost 1 512 500 ₴, that is 55.3% of the profit: a 2.5-month vacancy, the fit-out for the new tenant, the broker's commission.

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Sewing workshop: turnover costs 35% of profit

Natalia knew 18 of her 30 seamstresses had left in a year. In the report that is 3 800 ₴ to find each one. In reality one replacement costs 24 390 ₴, because a newcomer reaches the norm in three months. Over a year that is 439 020 ₴, or 35.2% of profit, and 58.5% of it the workshop did not sew.

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Mobile repair: a technician drives 37.5% of the shift

Ruslan measured the workload in call-outs: five technicians, five a day each, all of them busy. But out of 880 paid hours, 330 are the drive between addresses — 37.5% of the pool. In money that is 99 000 ₴ a month, 2.51 times more than the entire profit of the service.

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Security: a post needs 4.29 people, not three

Mykola counted a round-the-clock post as three wages — 61 488 ₴. But a post is 720 hours a month and a guard's norm is 168: it takes 4.29 people. The real direct cost is 90 768 ₴, and across nine posts the gap gives 263 520 ₴, that is 6.19 times the monthly profit.

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Poultry farm: three identical houses, different results

Taras's three henhouses cost the same — 535 020 ₴ each. But a young flock lays at 93% and a nineteen-month-old one at 67%. So one house earns 134 580 ₴ while the third eats 52 620 ₴, that is 40.4% of the farm's profit. A hen eats the same and lays differently.

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Dairy farm: a cow is milked 305 days and eats 365

Vitalii worked out the cost of a litre as all the costs divided by the whole yield — 12.25 ₴ against a price of 13.20 ₴. But that calculation holds no 60 days of dry period and no two years in which a heifer eats and gives no milk. Unproductive costs: 1 857 600 ₴ a year, 2.67 times the profit.

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Shoe shop: the markdown built into the order

Oksana blamed the markdowns on bad models. In fact the discount is built into the purchase: the supplier sells size runs 36–41, and customers buy the 38 and the 39. Of the 85 pairs outside full price, 75 are four extreme sizes: 88.2%. Markdowns and write-offs: 98 116 ₴ against 51 604 ₴ of profit.

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Waste collection: one district feeds, the other eats

Bohdan put the cost of emptying a container at 131.57 ₴ and thought his business was low-margin. No such container exists: in the dense district it costs 92.10 ₴, in the sparse one 197.36 ₴. One district gives plus 218 012 ₴, the other minus 115 492 ₴. And 34% of the mileage serves no container.

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Parts production: four stages at 96% give 85.78%

Ihor's report said “average quality 96.25%” — the mean of four stages. The true yield is 85.78%, because losses do not add up, they multiply. A gap of 10.47 percentage points costs 231 795 ₴ a month on a profit of 361 056 ₴. A part at assembly costs 117 ₴, at moulding — 46 ₴.

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22 min

15.10.2026