What is the difference between gross and net margin?
— Gross margin is the revenue left over after costs, while net margin takes into account all other expenses to determine profitability.
How can small business owners increase their profitability?
— Small business owners can increase profitability by aiming for a high gross margin, either by decreasing costs or increasing revenue.
Why is gross margin important for service-based businesses?
— Gross margin is crucial for service-based businesses as it determines the net margin and overall profitability.
How can increasing gross margin impact net margin?
— Increasing gross margin can significantly impact net margin, resulting in higher profitability for the business.
What is the significance of charging more for products or services?
— Charging more for products or services is necessary for profitability and scalability in business, as it helps cover expenses and generate higher profits.
We’ve got the additional info