Like many small business owners, I am part of some business focused Facebook groups which provide a great resource of information and an amazing place to network with likeminded business women.
It's so great to see so many sharing their success with posts celebrating and sharing their business turnover.
Posts like 'my business turned over 6 figures last year' or 'I had my first $20k month!'
But, the reality is that this is a turnover figure and not a profit figure.
Bottom line is where the money is and every business will have a different net profit %.
The goal is to focus on net profit and not turnover, otherwise you can lure yourself into a false sense of security.
Why am I talking about profit margins when I'm not an accountant?!
Price is an important part of a marketing strategy and so it's vital that you know your numbers from the get go.
This means keeping a check on your finances at all times and ensuring that you're keeping your costs as marginal as possible without compromising your service.
I promise you that it's worthwhile really getting to know your numbers!