Key Financial Metrics for Success in Product-Based Businesses
Sep 27, 2023Operating a product-based business involves unique challenges compared to a service-oriented business. There are often more intricate processes at play, encompassing not only the procurement of products for your business but also their subsequent sale to consumers.
Each of these stages frequently incurs additional expenses, and the financial landscape can become somewhat intricate if not meticulously monitored and managed. In this discussion, I will delve into essential financial metrics that I believe product-centric businesses should monitor diligently to ensure sustained profitability.
What you’ll hear in this episode:
[0:50] Understanding Why Starting Product-Based Businesses Can Be More Challenging Than Service-Based Ones.
[2:05] Analyzing Financial Disparities Between Product and Service-Oriented Businesses.
[2:48] The Top Metric for Tracking Your Progress: Unveiling the Crucial Role of Gross Margin.
[5:10] Evaluating Your Path with the Second Key Metric: Analyzing Time-Based SKU Trends.
[9:40] Assessing Success with Metric #3: Delving into Inventory Turnover.
If you like this episode, check out:
The Benefits of Continuity Planning
Maximize Your Income with the Help of a CFO
Building a Strong Company Culture with Caroline Pennington
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
