Calculate Profitability: How to Build a Profitable Business (Video)

Is your business making money for you or not?

To answer this question, you have to know the difference between Gross Profit and Net Profit. And to know that… well, I’m getting ahead of myself.

To make this all a lot simpler, I’ve made a couple of VERY short videos. These two 2-minute “White Board” lessons explain everything you need to know to be sure that your business is making real money, every day.  You don’t need to understand income statements or complicated profit and loss forms.  Its sooo much simpler than that.

Give me 4 minutes of your day and I’ll teach you how to KNOW that your business is making money… on every sale and every day.

Dedicated to your (net) profits,  David

Here’s Lesson #1 — Variable Costs and Fixed Costs

Before you can calculate profits, you’ve got to know what your costs are.  There are two kinds of costs, and its important to keep them straight.  Variable costs increase when you sell something.  Fixed costs don’t.  Watch this….

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Here’s Lesson #2 — Gross Profit and Net Profit

Now that you understand the basics of costs, you can see where we get the terms Gross profit and Net profit.  Both are important.  You have to make enough money on each sale to pay your variable cots.  But you also have to make enough money each day to pay for the fixed costs!  What’s left at the end of the day?  Watch this and find out…

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