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Profit & Margin
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22 Articles
Operating Expenses Explained: What Counts, What Doesn’t, and How to Trim the...
Operating expenses are the costs a business pays to run its operations, shown below gross profit on the income statement. For a...
Revenue Recognition for Service Businesses: When Money Becomes Revenue
Revenue becomes revenue when your business delivers the promised service, not simply when a client pays or you send an invoice. For...
Utilization Rate: The Service-Business Metric That Hides in Plain Sight
If your team looks busy but revenue still feels light for the capacity you’re paying for, utilization rate can help show where the gap...
Fixed vs Variable Costs: The Service-Business Owner’s Cost-Split Guide
Fixed and variable costs are the two ways an expense can behave: a fixed cost stays the same as your workload rises or falls, while a...
Break-Even Analysis: The Service-Business Owner’s Guide to Knowing Your True Costs
Illustrative composite: Dana is fictional. This scenario is an example, not a real client or member story. Dana runs a marketing...
Operating Margin: The Formula and What a Good Operating Margin Looks Like
Operating margin is operating income divided by revenue: the share of revenue left after the cost of services and operating expenses,...
Net Profit Margin: What’s Healthy for a Service Business and How to...
Net profit margin is net income divided by revenue: the share of every dollar your business keeps after all recorded expenses. What...
Profit Margin Calculator: The Inputs, Formulas, and Worked Examples for Service Businesses
A profit margin calculator shows what share of your revenue remains after costs. Enter revenue and costs for the same period to...
Contribution Margin vs. Gross Margin: Which Number Should Guide Your Next Business...
A new client can add revenue and still put pressure on your team. A project can look profitable until you account for the delivery...
Gross Margin vs. Markup: Why the Same Price Can Hide a Very...
A quote can show a healthy markup and still deliver a much lower gross margin than you intended. The difference comes down to one...