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Experience has shown that most small businesses have a profit and loss statement that is arranged in a format that was determined by their accountant. While that arrangement may work for the accountant, it is not a format that allows the small business owner to understand the information so that they can make better decisions about their business. This calculator allows you to use our sample data, or input the information from your profit and loss statement to see how our suggested format can give you more insight to your busienss. In the traditional format you know your gross profit, gross margin, operating expenses and net profit. However, you do not get a clear image of how your operating expenses are being spent. After you look at the data in the traditional profit and loss statement, there is a bottom of that profit and loss statement which will allow you to move your data to the new format we are suggesting. In the new format, your operating expenses will appear in groups; advertising, occupancy, payroll, and 'other operating expenses'. Each of the groups are subtotaled as well as expressed as a percentage. There are additional columns in the new format where you can enter the data for 'year to date', 'same month last year', 'year to date last year' and 'budget'. This new format will give you the percentages and totals for each of the groups as well as give you a comparison for the 'year to date' and 'budget'. Again, the experience from having worked with many small business owners and having taught this in many educational sessions has shown that this 'logical profit and loss statement' allows the owner to better understand what has happened in their business as well as make decisions about the operation of their business. PROFITS PLUS, FOUNDER OF...
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MARCH 2026
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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.
Small Business
Every time I see the logo for Target stores, I think about small businesses and the need to know which people to target as their customers. Of course, of most importance is the person who has spent any money with your business.
I ask businesses if they know how much the average person spends with their business. Most offer a quick response with a dollar amount. That answer is incorrect as they are telling me what the average existing customer is spending. The average person in any community spends no money with that small business.
Looking for new customers without any plan of how to do so is just spending money. That is why every small business needs to know how to find and use information. Find ideas in the March Small Business Advisory.
Small Business
Employee retention; is it important? Or is it easier to lose an employee and wait for the next applicant to walk in the door? The Small Business News for March shares some statistics of the expense you incur when you make the change instead of working to retain a current employee.
It is baseball season and we use the sport as an explanation of the cost of growing your business. In Boston's Fenway Park, left field has a wall that is know as the green monster.
And that is what growing your business is - a monster! You can't successfully grow your business without a plan and knowing you will have the cash on hand to pay for the growth.
Are you selling something or persuading the customer? With your employees are you repeatedly telling that employee or are you persuading them to excel?
Influence: The Psychology of Persuasion by Robert Ciaidini is our suggested book for March 2026. Most definitely an appropriate read.
All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
