Questions

Hi there... It does depend on what you do but... A good business with a medium to high gross profit % should aim to make over 20% of sales as profit. I see it that 0% to 10% profit (as % of sales) is like a C grade at best (obviously not near the 0% mark), 10% to 15% is a B grade, 15% to 20% is like a B+ to A-, 20% to 25% is A grade and 25% + would be like A+. If you operate with a low GP, then it is often better to look at your profit % over GP instead of over sales. And the above #s would be similar re what you want to aim for, albeit probably slightly higher %. Of course there are extremes and some companies can make 30% to 50% + profit, but that does not happen overnight. A "normal" business would want to be aiming along what I note above and of course aim for world-class too and blow them away. The above would be pre tax profit % aims. Enjoy and good luck in getting great profitability %.


Answered 9 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2024 Startups.com LLC. All rights reserved.