AFS064 - How to Work Out Profit Margins - a podcast by Rebekah Allan

In this episode of Angel Foods Show, I share a quick tip to work out food business profit margins. This sum (yes, maths) 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!

The Angel Foods Show is brought to you by the Cake Business School. It is only $1 to enrol and learn how to price + market + sell your sweet items. Enrol here – http://cakebusinessschool.com

• 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. Currently, it is nearly 40% off for 1-year and when you enrol before 31 October 2017 you get a free cake pricing app*! Read more and enrol here – http://cakebusinessschool.com
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Further episodes of Angel Foods Show: Sales + Marketing + Training = Growing Sweet Business

Further podcasts by Rebekah Allan

Website of Rebekah Allan