How to calculate your profit on the back of a napkin

You shouldn’t need an MBA to determine important business numbers like, say, profit. Of course, some lawyers and accountants want you to believe that business is difficult.*

(I know, I’m a recovering lawyer)

Fact is, business just isn’t that complicated if you strip away all the fluff.

Take profit, for example

Before you start any new business venture, you need to have a good grasp of the most important numbers of that business. Unfortunately many people (luckily no Viditrainer subscribers. Nudge. Nudge. Wink. Wink) get so excited about their business idea, logo, location or other “sexy” concepts that they completely forget to start with the most important numbers.

The most important number is profit.

But how do you determine profit if you haven’t started with the business yet? Easy. You start with a concept called Average Customer Spend.

Click on this week’s video below to see how it works.

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*By the way, not all accountants and lawyers are bad. Some are actually quite good. Make sure you get advice from a good one

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  1. Cost of sales vs Operating Costs - Why you need to understand both - May 4, 2014

    […] There’s nothing boring about profit. […]

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