PROFIT vs MARGIN vs NET PROFIT vs NET MARGIN

#Makola has more millionaires than Airport City… change my mind 😅
The Abossey Okai businessman with #entrepreneurship training will rival the performance of most companies around Airport City in #Accra.
I believe this entirely because I correspond daily with #farmers, market women and traders who casually, for example, make 40 cedis on 100 cedis and do not grasp that though 40 cedis is not much money, a 40% gross margin per trade per transaction per day on a single product, with typically short sales cycles, is one great of a place to start the race to financial freedom!
Apply that to the annual #turnover that passes through Makola, Circle, Kejetia, Kaneshie, Agbogbloshie Market, Tamale Central, Accra Tudu, and imagine the potential of the knowledge and application of the fundamentals of #Profit, #Margin, #ProfitMargin, #NetProfit, and #NetMargin.
“That is how you devour a whale... one bite at a time”.
We cannot and will not attempt to change everything and everyone all at once. But the basic profit metrics, as dissected in this article, when absorbed, are a step towards giving the #entrepreneur in #Africa an edge.
An edge over who? Who is the opposition?
#YESTERDAY, that is the opposition, and that should be the benchmark. We should aim for steady #growth, one step at a time, one day at a time... for that is how you devour a whale as big as surviving as an entrepreneur in #Ghana and in Africa.
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[@icreatyterre]

Net profit margin is the percentage of net profit compared to revenue. It shows the profit a business earns per dollar of revenue. A high net profit margin shows that the business is operating efficiently and using its capital well.