Profit margin is a key metric for understanding the financial health of your business. To understand the importance of looking at profit margins, and the difference between gross and operating profit margin, please click through to this article by my colleague Geri Stengel: Profit is Nice. Margins are Even Better.
When people ask me how they should estimate the profit margin of a planned new business, I advise seeking out those who are already in that business to see what you can learn. As an alternative, if you are thinking of opening a pizza place, a copy shop, a diner, or one of a number of other businesses, “New York” Magazine has identified the profit drivers in a recent issue. Click below and you will also find out how the New York Yankees franchise increased $200 million in value, despite a $28 million loss.
