When it comes to running a successful business, it’s easy to get caught up in sales numbers and gross profit. But here’s the truth: those sales numbers might be hiding a bigger issue, one that could slowly drain your business dry. Operating profit is giving you a clearer picture of how well your business is really performing.
One of the biggest mistakes is ignoring operating expenses. These are the costs that can eat away at your profitability if you’re not careful. Many businesses fall into the trap of ignoring their operating expenses, only to realise too late that these costs are significantly affecting their business.
What is operating profit?
Here’s a video in which I talk about:
- What operating profit margin is
- How to calculate operating profit and operating profit margin
- What a high margin and a low margin means
- and so much more.
To understand your business’s financial health better and position yourself for long-term success, watch the video by clicking the link below.
Conclusion
It’s not just about how much you’re selling. It’s also about how much you’re keeping after you cover all your everyday expenses. If your operating profit is solid, it means your business is running efficiently, and you’ve got room to grow. But if it’s not where it should be, it might be time to take a closer look at where your money’s going and where you can make improvements.
Up your business numbers game by using our software solution Budgetwhizz®. It makes keeping track of your cash flow and financial planning easier. It helps you stay organised so you can focus on what matters to you; the creative work and the impactful change. Take a step away from the chaos with fast setup & easy navigation – numbers just got real…for the better! Get organised & also make sense of it all with Numbers Knowhow® today!