Fixed Costs And Profit: Pt. 5/8
Benchmarking helps to highlight areas of your business that could be improved. Not all fixed costs are equal. What about net profit?
We speak with Lynda Logan, Managing Director at Charts Partners as she discusses the importance of understanding fixed costs and profit in a business. Fixed costs include expenses like occupancy, wages, interest, and insurance, which are necessary for running the business regardless of sales. On the other hand, gross profit is calculated by deducting the cost of performing a service, such as chemicals and technicians, from the revenue or sales generated. By understanding these concepts, business owners can make informed decisions to optimise their profitability.
This video is part of a series to help equip small business owners with knowledge and skills to level up their business. Watch the video to learn more.
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