The Most Under-leveraged Financial KPI | The Business Coach - Episode 83
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The Most Under-leveraged Financial KPI | The Business Coach - Episode 83
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In this episode of The Business Coach podcast, host David Finkel dives into the crucial financial KPI, gross profit margin. He explains how understanding and leveraging this metric can significantly increase business profitability. David shares real-life examples, practical advice, and actionable strategies for identifying the most profitable products, clients, and services. He also highlights the importance of benchmarking and how to set up your accounting software to track gross profit effectively. Don't miss out on this essential guide to making smarter business decisions and maximizing profit.
00:00 Introduction to Gross Profit Margin
00:38 Welcome to The Business Coach Podcast
01:04 Understanding Gross Profit Margin
02:59 Calculating Gross Profit Margin
05:31 Comparing Products and Services
09:40 Real-World Examples and Applications
14:31 Using Accounting Software for Gross Profit Analysis
16:37 Benchmarking and Leading Indicators
19:21 Components of Cost of Goods Sold
22:58 Actionable Steps for Business Owners
24:05 Conclusion and Final Thoughts
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