Lesson 2: How to Calculate Your Profit and Loss, and Why it Matters
Course content (10 lessons)
Module 1: A Simple Guide to your Profit and Loss Statement
01 |Module 2: Cash Flow and Accounting Systems
We’ve all heard the cliche “sales fix everything”.
Indeed, sales fix a lot of problems. As long as you have sales, you have money to invest in new stock, marketing and team members. But like every piece of advice from business gurus, take it with a grain of salt.
Sales don’t fix everything; gross profit dollars do.
Gross profit is a critical metric that every business should be measuring. It’s more important than measuring sales, because it shows the quality of your sales.
In this lesson we unpack how to calculate your gross profit and why it matters more than your sales. The key takeaway from this lesson is to get intimate with your gross profit before trying to scale. The risk is that you “grow broke”.