Gross profit margin measures the percentage of revenue paid to you by customers that is yours to keep. Gross profits can be reinvested in sales and marketing to help you grow your business.
You can calculate your gross margin by deducting your Cost of Goods Sold (COGS) from your revenue and dividing the result by your revenue.
Understanding Gross Margin will help you to:
+ identify price points that maximise profit;
+ understand the scalability of your business model; and
+ better manage your cash flow, since your gross margin may go towards paying other business costs.
Read What is Cost of Goods Sold and How Does it Affect My Gross Margin? in conjunction with downloading LegalVision’s free Gross Margin Calculator.
+ understand the scalability of your business model; and
+ better manage your cash flow, since your gross margin may go towards paying other business costs.
LegalVision has created this free Gross Margin calculator to assist. Use it to input sales revenue and COGS in order to determine gross margin.
Read What is Cost of Goods Sold and How Does it Affect My Gross Margin? in conjunction with downloading LegalVision’s free Gross Margin Calculator.
If you need legal assistance with your new business, LegalVision’s experienced startup lawyers can assist. Just call 1300 544 755.
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