💡 Finance Term of the Week: Profit Margin

Most small businesses focus on sales — but don’t always check if they’re actually making enough profit.
Profit Margin is a clear number that shows how much money you really keep from each sale, after costs.

Quick Breakdown:

  • Revenue is what you make.
  • Costs are what you spend.
  • Profit Margin is the percentage you keep.

Example:

Sell something for 5,000 .
It costs you 3,000 to make/deliver.
Profit = 2,000
Profit Margin = (2,000 ÷ 5,000) × 100 = 40%

Why it matters:

  • Helps you price products properly
  • Shows if you’re really profitable
  • Keeps you from working hard but earning too little

Do you know your profit margin?
Drop a % if you’d like help checking yours!


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