#profit-margins
Calculate, benchmark, and improve profit margins across your business
A working operator's guide to calculating restaurant prime cost every seven days, the 55–65% benchmark by service segment, the five leaks weekly tracking surfaces first, and the bookkeeping setup the cadence requires.
Activity-Based Costing replaces volume-based overhead allocation with cause-and-effect cost drivers, revealing which customers and SKUs actually pay and which silently lose money. This guide explains how ABC and its modern successor TDABC work, the five implementation steps, and why roughly 20% of customers and 30–40% of SKUs often destroy value.
Your income statement reveals whether your business model actually works—not just whether the bank balance is positive. Learn every line item from revenue to net income, how to calculate all three profit margins, and how to spot cost trends before they compound.
Learn how to calculate gross, operating, and net profit margins, what counts as a healthy margin by industry, and six proven strategies to improve your bottom line.
A line-by-line breakdown of the income statement for small business owners — covering revenue, COGS, gross profit, operating income, and net income, plus key ratios and the five most common mistakes that distort results.
Gross, operating, and net profit margin explained with formulas, industry benchmarks, and worked examples—so small business owners can measure and improve true profitability.
Your business pulled in $500,000 last year—but did you actually make money? Learn the critical difference between revenue and profit, the three types of profit you must track, and how to improve your margins.
