The short answer: there is no one normal profit for every shop. A grocery shop and a clothes shop make very different profits from each sale. So do not copy a number from another shop. Work out your own profit for every 100 sales, and compare it with your own last month’s, with your costs,…
The short answer: the goods on your shelves are your money in another form. Too many goods, and your cash is stuck. Too few, and you lose sales. Know which goods sell fast, work out when to buy again, and check how long your goods stay on the shelf. Why this matters In the last…
The short answer: profit is a number on paper. Cash is money you can touch. In a month, your shop can make a profit, but the money may be with your customers, on your shelves, in your home, or paid to a lender. This article shows the five places to look. Profit and cash are…
The short answer: your real profit is what is left after you take away the cost of the goods you sold, and then the other money you spent. The goods still on your shelves are not a cost yet. This is the part most shop owners forget. Why sales minus payments is the wrong way…
The short answer: a shop expense is money you pay to keep your shop running. Write each payment on the same day you pay it. At the end of the week, add up your list. It shows you where your money goes. Two kinds of money you pay out Write these two kinds on separate…
The short answer: every day, when you close the shop, fill in one simple page. It has a few numbers: the cash you had in the morning, the money you received, the money you spent, the money you took for yourself, and the cash you count at the end. This takes about 10 minutes. If…