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With over 25 years of frontline experience Tom Shay is America's leading small business management expert. He's a "Must Have" for your next event.

What it takes to make a profit calculator from Profits Plus

Small businesses often have a challenge of getting staff to understand the challenges of profitably operating a business. Too often the staff thinks that you simply double the cost of everything you buy, have some minimal expenses and then put the rest in your pocket. If only it were that easy.

This calculator is provided to help you illustrate to your staff just what it takes to operate a business. Without sharing specific numbers, this calculator asks you to input several numbers from the operating expense part of your income statement and the maintained margin which also comes from your income statement.

After inputting that information, pick an example item from your business and input the selling price. The calculator will then show how much of the sale of that item goes to each of the categories of expense and how much is profit. This calculator provides a great illustration, using your business, to show that it is quite a challenge to profitably operate a small business.


What it takes to make a profit calculator from Profits Plus
Our maintained gross margin is:
As a percentage of sales, our occupancy costs are:
As a percentage of sales, our staffing costs are:
As a percentage of sales, our advertising costs are:
As a percentage of sales, other operating expenses are:
As a percentage of sales, our total operating expenses are:
As a percentage of sales, our taxes are:
When an item sells for this amount, here is where the money goes:
Pay for the item:
Occupancy costs:
Staffing costs:
Advertising costs:
Other operating expenses are:
Our taxes are:
Our net profit is:

   

MARCH 2024
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Small Business

Conversations

We are taking a break with the Small Business Conversations programs. However, we have the many years of the program cataloged by date on the website.

Small Business

AdvisorieS

The March Small Business Advisory remembers a line from many a western movie; "They went that a-way" and expressions similar to that distract from a business giving great customer service.

Small Business

News

Top Story

The big news item on November 30, 2022 was the advent of ChatGPT; Artificial Intelligence applications which many believe are used exclusively by big businesses.

This does not have to be true as there are many applications we share that have usage in a small business.


Article of the Month

"No plan B"; the subtitle to Van Morrison's Born to Sing album. The idea of no plan B also applies to a small business when you think (or is it when you don't think) about when the time, or opportunity, comes that you can sell your business. Generally speaking, a small business owner gets less money when they decide to close their business.


Book of the Month

"Escape from Cubicle Nation" is the March book of the month. While directed towards those working a corporate job and wanting to become an entrepreneur, we remind readers about utilizing their gut feeling to make decisions in their business.

After all, you did use your gut feeling when you decided to open or purchase your business.

BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Conversations

We are taking a break with the Small Business Conversations programs. However, we have the many years of the program cataloged by date on the website.

Small Business

Advisories

The March Small Business Advisory remembers a line from many a western movie; "They went that a-way" and expressions similar to that distract from a business giving great customer service.

Small Business

News

 

Top Story

The big news item on November 30, 2022 was the advent of ChatGPT; Artificial Intelligence applications which many believe are used exclusively by big businesses.

This does not have to be true as there are many applications we share that have usage in a small business.


Article of the Month

"No plan B"; the subtitle to Van Morrison's Born to Sing album. The idea of no plan B also applies to a small business when you think (or is it when you don't think) about when the time, or opportunity, comes that you can sell your business. Generally speaking, a small business owner gets less money when they decide to close their business.


Book of the Month

"Escape from Cubicle Nation" is the March book of the month. While directed towards those working a corporate job and wanting to become an entrepreneur, we remind readers about utilizing their gut feeling to make decisions in their business.

After all, you did use your gut feeling when you decided to open or purchase your business.