health, food, store, for sale, buy, business, purchase

BrisbaneBusinessSales.com.au  SydneyBusinessSales.com.au MelbourneBusinessSales.com.au AdelaideBusinessSales.com.au PerthBusinessSales.com ACTBusinessSales.com.au GoldCoastBusinessSales.com.au NoosaBusinessSales.com.au


View All the LATEST Real Estate Listings

 

Australian Real Estate Sales, Brisbane, Sydney, Gold Coast, Noosa, Sunshine Coast, Canberra, Melbourne 

Australian Property Sales, Brisbane, Sydney, Gold Coast, Noosa, Sunshine Coast, Canberra, Melbourne 

 
 
Go for Gold
Use the Industry Leader 

Proud Members of

 


Part 3 Financials

Written on the 8 February 2014 by National Australia Bank

Part 3

Use your profit margins to benchmark your business

You can use your gross and net profit margins as benchmarks to gain a clearer picture of your performance in two ways:

Internal benchmarking

Compare your profit margins to previous periods to see where your selling prices are coming under pressure or costs are increasing.

Compare profit margins on individual product lines to see which products are the most profitable.

External benchmarking

Compare your profit margins against those of similar businesses in your industry to find out where you’re doing well and where you should set improvement goals. Your accountant or industry association might be able to give you advice on accessing industry average figures.

Profit margins tell you how much room you have to manoeuvre on pricing and the level of sales you need to break even. As long as you have a positive gross margin, each sale will make some contribution to covering your overheads.

www.australianbusinesssales.com.au
e.noel@australianbusinesssales.com.au

1300722556

mob 0418741814


Author: National Australia Bank

CONNECT WITH US:

Australian Business Sales - find a business for sale in Brisbane, Noosa, Sunshine Coast, Gold Coast, Sydney, Melbourne


Latest Business Sales Articles

1. What is the difference between a business valuation and a property valuation

2. Value your Business read more

3. Land a Private Placement to Fund Critical Investments read more

4. Price Optimize for Your Best Customers read more

5. Prioritize Your Debt read more

Read All Articles



Proud Members Of:


 


Home Bookmark This Site Tell A Friend Contact Us Login AccountBusiness Property For Brokers My Account