I don't know my real profit
If you can't say what you earned last month, every decision is a guess.
Many owners know their sales and their bank balance but not their profit. The two are different, and the difference is where decisions go wrong.
The simple way to see it
- Sales minus costs that rise with each sale (stock, packing, delivery) gives contribution.
- Contribution minus fixed costs (rent, salaries, electricity) gives operating profit.
Start today
Take last month's figures and put them into these two lines. Even rough numbers will show whether the business is making money, and how much you need to sell each day to break even.
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