22 Jan Mark-Up, Profit and Your Bottom Line?
How much money do you need to gross each year to make you business a business not a hobby? What margin do you need cover with the mark up on your product? You wouldn’t believe the number of entrepreneurs a year that can’t answer that. This is one of the most basic and fundamental facts about your business. At what point are you better off staying at home?
The first question you need to be able to answer is what is your overhead. What are your operations costs? How much does it cost you to operate your business?
The next is “Is there an industry standard mark up for your industry?” If your industry has a standard mark up of 30% and you need to mark up 50% to cover your overhead then you have a real problem. Here are some of our favorite tools to help you learn about mark up, margin and retail costing.
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