In this episode of Angel Foods Show, I share a quick tip to work out food business profit margins. This sum (yes, math) is super easy and simple to remember! Also, we talk about what you should aim for, profit margin wise? (And amount or percentage of expenses). Plus an update on quails!
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- Gross income is before expenses. Net income is after expenses.
- Gross income minus expenses is net income.
- GPM equation (sum) is little number divide by big number (net income divided by gross income)
- In the first 12 months of business, aim for 50% GPM (or more). Over 12 months in business, aim for about 60-75% GPM.
- If you need help with bookkeeping, GPM, pricing (+ increasing profit margins), creating a business plan and income goals – that training is inside Cake Business School. Click Here to Enroll
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