Is your business making you poor?
Knowing your numbers is the difference between running your business and letting it run you, and one of the most important numbers you need to know is your profit margin.
Profit margin is the difference between the amount of money you’ve made and the money you’ve spent in the process.
One of the best ways to use profit margins as an indicator of a business’s financial health is to compare it to your industry’s benchmark profit margin. If your margins are higher than average, that’s good! But if they’re lower or worse yet in the negatives, you might want to reassess what you’re doing.