How to Calculate Gross Profit

Know whether your business is making money. March 31, 2013 4 min read One of the most important financial concepts you’ll need to learn in running your new business is the computation of gross profit, and the tool you use to maintain gross profit is markup. The gross profit on a product is computed as follows: Sales – Cost of Goods Sold = Gross Profit To understand gross profit, it is important to know the distinction between variable and fixed costs. Variable costs are costs that change based on the amount of product being made — and that are incurred as a direct result of producing the product. They include: Materials used Direct labor Packaging Freight Plant supervisor salaries Utilities for a plant or a warehouse Depreciation expense on production equipment Machinery Fixed costs are generally more static in nature. They include: Office expenses such as supplies, utilities and office telephones […]

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How to Start a Business Online

Seven tried and true steps for attracting visitors to your small business’ site — and getting them to buy. Opinions expressed by Entrepreneur contributors are their own. There is a proven sequence of steps you can follow to guarantee your success when you’re starting a small business online. I’ve seen thousands of people start and grow successful businesses by doing the following: Find a need and fill it. Write copy that sells. Design and build an easy-to-use website. Use search engines to drive traffic to your site. Establish an expert reputation for yourself. Follow up with your customers and subscribers with email. Increase your income through back-end sales and upselling. Anyone, from newbie to seasoned online entrepreneur, can benefit from this process in learning how to start a business online. Related: 10 Online Invoicing Services for Small-Business Owners Step 1: Find a need and fill it. Most people who are […]

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How to Plan Anything (So You Actually Get it Done)

My formula for planning anything without getting overwhelmed, plus how you can use it to write the perfect blog post! Pat Flynn May 21, 2018 Subscribe to my YouTube Channel Have you ever tried to plan something and just gotten completely overwhelmed? Today, I’m going to give you my PAT formula for planning anything—along with the one tool I use to make any planning process dead simple. I’ll dig into the details of the PAT formula in just a minute. But first, the thing I love the most about the PAT formula is it’s applicable to just about anything you might be planning. Maybe you’re building a business, or writing a book. Maybe you’re creating something smaller, like a podcast episode or a blog post. Or maybe you’re planning an event, like a party or a vacation. It could even be something as big as a wedding. Whatever it is, […]

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