Thank you for sharing. I shoot for a 40% profit margin after all expenses. One mistake I made was to cut costs in an effort to get to that profit margin, rather then look at ways to increase revenue while keeping costs static, and that had a fundamental difference in the overall profitability of our company.
Love your videos! So thankful for them. My small business is operating at 40% this year (so far). Just did the math. Do you have a video addressing cash problems?
Fantastic! Do you include your owner compensation in that 31% net profit number? Or do you take distributions out of the profit? i should have mentioned that in this video :/
@@ClaraCFOthat is what l was wondering. If you are a sole prop, your net income is your net profit. If you are a limited company, your salary is an expense/overhead, right?
Hi Clara Top of the morning to ya. listening from Ireland 🇮🇪 this St Patrick’s Weekend. ☘️ just started listening to your channel. Thank you for the clear concise explanation. Regards Kieran
Childcare is limited it seems. Asking families to pay the true cost of care may not be feasible. We’re at 12%. Labor efficiency score is 1.58!! Omg! But that’s why the sector is screaming there needs to be more support.
Oh yes - childcare is an incredibly hard business to reach this target profitability. It is really great that you can be at 12% though! Most facilities I've talked to are operating at a loss! The best thing you can do to help with profit % is to be really efficient with your labor hours and keep overhead costs low. Also increase prices every year - though I am sure you already know that!
How much money we need to save or don't touch when we get profit? Like you mentioned in your video like more sale doesn't mean your business is doing fine. right? My question is if everything is doing finem then how much we have to save from profit?
I like businesses to have 2-6 months worth of operating expenses saved in their business. Once you have this accumulated, then you can be more flexible with how you use your profits. You may choose to distribute more or invest in other things in the business with additional profit. I will make a video on this!
Jay Sita Ram Ji Madam Ji. *)No Rats 🐀 Race. *) No Rabbit 🐰 Race. *) No Competition Race. *) No Bad Habits. *) Total LEGAL BUSINESS way of 1 number. *) Take care of yourself and healthy mindset. *) Lear unstoppable Of humanity and human health's . *) do incredible task and takes incredible result from your God .
You were trying to scold us for not subscribing and liking. This is the first time I ever watched your show, but it turned me off when you did that. I looked past it, and you do have good content.
This is valuable information you should be paying for, yet you get to enjoy it for free. Actionable advice & all… and Clara finds herself having to ask people to subscribe because of mentalities like yours. It goes without saying that these videos take her time, effort & money. The least we can do is just subscribe & when she finds herself having to remind us, follow & like without complaining (I’m only referring to people who see value here & the need to keep coming back). Please have a heart!
Thank you for sharing. I shoot for a 40% profit margin after all expenses. One mistake I made was to cut costs in an effort to get to that profit margin, rather then look at ways to increase revenue while keeping costs static, and that had a fundamental difference in the overall profitability of our company.
Love this series! I found Greg Crabtree's book from your channel, and keep it on my desk and refer to it. Thank you!
it's a fantastic resource!
Please Can I get Greg Grabtree Book?
" जैसे कर्म , तैसेचि फळं ".
तुम्हाला भावी आयुष्यासाठी खुप खुप शुभेच्छा.
Love your videos! So thankful for them. My small business is operating at 40% this year (so far). Just did the math. Do you have a video addressing cash problems?
Informative. Right now I'm reading "The 80/20 Principle". Will read your recommendation. Thanks
the 80/20 principle is really interesting!
$192,643 at 31% Net Profit - In a tax-free jurisdiction
Fantastic! Do you include your owner compensation in that 31% net profit number? Or do you take distributions out of the profit? i should have mentioned that in this video :/
@@ClaraCFOthat is what l was wondering. If you are a sole prop, your net income is your net profit. If you are a limited company, your salary is an expense/overhead, right?
thanks you helping a lot of us!
Hi Clara Top of the morning to ya. listening from Ireland 🇮🇪 this St Patrick’s Weekend. ☘️ just started listening to your channel. Thank you for the clear concise explanation. Regards Kieran
Thanks for being here! Happy St. Patrick's Day!
Great video as always. Do we include employer paid taxes in the margin calculation?
Do you mean payroll taxes? Those would be included. Or are you talking about your federal tax payment? This is BEFORE your federal tax payment.
Great video as always.
Thank you!
Childcare is limited it seems. Asking families to pay the true cost of care may not be feasible. We’re at 12%. Labor efficiency score is 1.58!! Omg! But that’s why the sector is screaming there needs to be more support.
Oh yes - childcare is an incredibly hard business to reach this target profitability. It is really great that you can be at 12% though! Most facilities I've talked to are operating at a loss! The best thing you can do to help with profit % is to be really efficient with your labor hours and keep overhead costs low. Also increase prices every year - though I am sure you already know that!
How much money we need to save or don't touch when we get profit? Like you mentioned in your video like more sale doesn't mean your business is doing fine. right? My question is if everything is doing finem then how much we have to save from profit?
I like businesses to have 2-6 months worth of operating expenses saved in their business. Once you have this accumulated, then you can be more flexible with how you use your profits. You may choose to distribute more or invest in other things in the business with additional profit. I will make a video on this!
Thanks for your advise. Appreciate it.
Hannah… I always love your content! Clay
Hi Clay! Thanks for watching!
Great video
Thanks for watching!
Do you have a video that defines a profit margin even more?
What are your questions? I can make one!
is it Net profit/Revenue or Operating Profit/Revenue
Net profit
15% for net profit or gross profit?
Net!
Jay Sita Ram Ji Madam Ji.
*)No Rats 🐀 Race.
*) No Rabbit 🐰 Race.
*) No Competition Race.
*) No Bad Habits.
*) Total LEGAL BUSINESS way of 1 number.
*) Take care of yourself and healthy mindset.
*) Lear unstoppable Of humanity and human health's .
*) do incredible task and takes incredible result from your God .
You were trying to scold us for not subscribing and liking. This is the first time I ever watched your show, but it turned me off when you did that. I looked past it, and you do have good content.
haha! that's funny - certainly not my intention!
This is valuable information you should be paying for, yet you get to enjoy it for free. Actionable advice & all… and Clara finds herself having to ask people to subscribe because of mentalities like yours. It goes without saying that these videos take her time, effort & money. The least we can do is just subscribe & when she finds herself having to remind us, follow & like without complaining (I’m only referring to people who see value here & the need to keep coming back).
Please have a heart!
Thank you for the great work. I appreciate you! 🫶🏽