It's like a health check-up for a business, showing how well it's making money. The better the result, the healthier the business.

• Gross Profit Margin
• Profit Margin

• Formula: (Gross Profit / Sales Revenue) x 100
• Tells us: For every dollar of sales, how much is pure profit before other expenses.

🌟 Real-world example

Imagine you're selling pizzas for $20 each, but they only cost you $6 to make. That's a big slice of profit – $14 or 70%!

Ways to Boost Gross Profit Margin 📈

• Raise Prices in Niche Markets: Where you don't have much competition. But be careful, loyal customers might get annoyed if they feel you're overcharging.
• Find Cheaper Suppliers: Reducing the cost to make your product boosts your margin. But remember, cheaper shouldn't mean worse quality!
• Promote Your Product More: Think Instagram ads, TikTok challenges, etc. But don’t blow all your profit on pricey ad campaigns.
• Boost Worker Productivity: The more they make/sell, the more profit. But firing the lazy ones might scare the hard workers!