Thats just GROSS !

Most small businesses have a net profit margin of 10%.   If you want to see how easy it is to double your profit without spending a dime in a typical small business, check out the free to use SMBROI Profit Simulator.  If you would like me to quickly show you how to use it, please feel free to book a 15 minute call on my calendar using the link below.  https://calendly.com/profitadvisors/quick-q-a

Gross Profit Margin

The gross profit margin is a measure of the efficiency of a company in managing its production costs relative to its revenue. The formula is:

Gross Profit Margin = (Gross Profit / Revenue) × 100

Where:
Gross Profit = Revenue - Cost of Goods Sold (COGS)

Example Calculation for Gross Profit Margin:

Revenue: $100,000
COGS: $60,000
Gross Profit: $100,000 - $60,000 = $40,000
Gross Profit Margin: (40,000 / 100,000) × 100 = 40%

Net Profit Margin

The net profit margin indicates how much net income a company makes for every dollar of revenue, reflecting the overall profitability after all expenses. The formula is:

Net Profit Margin = (Net Profit / Revenue) × 100

Where:
Net Profit = Revenue - Total Expenses
Total expenses include the cost of goods sold (COGS), operating expenses, interest, taxes, and any other expenses.

Example Calculation for Net Profit Margin:

Revenue: $100,000
Total Expenses: $85,000
Net Profit: $100,000 - $85,000 = $15,000
Net Profit Margin: (15,000 / 100,000) × 100 = 15%