Episode 15 – Knowing Your Numbers – The Profit Formula
Welcome to the our Elevate Weekly Video Series. Last week, we revisited the 4S model and applied it to the time you spend at work. If you missed it, you can catch up here.
This week, we’re going to take a look at the importance of knowing your numbers and the profit formula. If you’re trying to get ahead in business, it’s a fundamental requirement to be clear about the numbers on your profit and loss, and the drivers that have an impact on your bottom line.
It’s not just about knowing your sales and GP. It’s about having a good handle of where your breakeven is and what impact fixed and variable costs have on your net profit.
This week, I am going to take you through a simple exercise to demonstrate the relationship between the various revenue and cost drivers on your P & L. Check out the video below.
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