Teaching COGS and BEP: Helping Small Businesses in Mojo Village Survive and Grow

Micro, Small, and Medium Enterprises (MSMEs) are very important for the local economy. In a busy area like RW 05, Mojo Village, Gubeng District, Surabaya City, there are many home businesses, especially in food and crafts. However, even though these business owners work very hard, they face a big problem: they do not manage their money well. Many of them have been running their business for years, but they still do not know exactly how much net profit they make.

This problem is why we started our community program. With help from our field supervisor, we held a workshop about two important things: Cost of Goods Sold (COGS) or how much it actually costs to make a product and the Break-Even Point (BEP). The event was held at the community hall and was attended by local PKK women’s groups and business owners. We chose these topics because calculating COGS and BEP is the first step before a business can grow.

In my view, understanding COGS and BEP is not just about difficult accounting. It is about how a business survives. Many owners set their prices just by guessing or copying their competitors so they can sell quickly. However, they forget to calculate hidden costs, like electricity, cooking gas, or even their own time and labor. Because of this, they often make a lot of sales but end up with zero profit. Knowing the BEP also helps them see exactly how many items they must sell every day just to cover their costs.

During the program, we did not just talk about theory. We directly helped them by practicing with a real business owned by one of the residents. We showed them how to separate personal money from business money. We also gave them a very simple formula they can use at home. From this activity, I realized that the main problem is not that people cannot do math. The problem is that they think financial reports are scary and complicated. Once we made the formula simple and practical for their daily life, they were very excited to learn.

The collaboration between students, RW 05 leaders, and the PKK group shows that working together can really help the local economy. This experience taught me that we do not always need a lot of money to help others. Giving small business owners simple financial tools like COGS and BEP can create a big, long-term impact.

In the end, a strong business is not just about selling a lot of products. It is about knowing how healthy your business finances are. By understanding the real cost of their products and knowing their break-even point, the business owners in Mojo Village now have a strong foundation to make good decisions, avoid losing money, and grow bigger in the future.