Use the SMART goals principle to set goals for your business on Entrepreneur's Day. Make sure that your goals are:

Masemola plans to sell 100 cupcakes at R4 each.

$$\text{Total Income} = \text{Number of cupcakes} \times \text{Selling price per cupcake}$$ $$\text{Total Income} = 100 \times \text{R}4 = \text{R}400$$

Masemola has several costs:

• Cost of cupcakes: $100 \text{ cupcakes} \times \text{R}2/\text{cupcake} = \text{R}200$
• Transport to bakery: R20
• Packaging boxes: $15 \text{ boxes} \times \text{R}1/\text{box} = \text{R}15$
• Trading license: R20
• Stall rental: R25
• Advertising leaflets: R30

$$\text{Total Expenses} = \text{R}200 + \text{R}20 + \text{R}15 + \text{R}20 + \text{R}25 + \text{R}30$$ $$\text{Total Expenses} = \text{R}310$$

The net profit is the total income minus the total expenses.

$$\text{Net Profit} = \text{Total Income} - \text{Total Expenses}$$ $$\text{Net Profit} = \text{R}400 - \text{R}310 = \text{R}90$$

Masemola's Budget Summary:

• Total Income: R400
• Total Expenses: R310
• Net Profit: R90

The R400 donation from his uncle is initial capital to start the business, not part of the income generated from sales.