Lesson 2: How to Calculate Your Profit and Loss, and Why it Matters

Lesson 2: How to Calculate Your Profit and Loss, and Why it Matters

We’ve all heard the cliche “sales fix everything”.

Indeed, sales fix a lot of problems. As long as you have sales, you have money to invest in new stock, marketing and team members. But like every piece of advice from business gurus, take it with a grain of salt.

Sales don’t fix everything; gross profit dollars do.

Gross profit is a critical metric that every business should be measuring. It’s more important than measuring sales, because it shows the quality of your sales.

In this lesson we unpack how to calculate your gross profit and why it matters more than your sales. The key takeaway from this lesson is to get intimate with your gross profit before trying to scale. The risk is that you “grow broke”.

Build an online store for your business with your new skills.

Shopify has everything you need to start selling, all in one place.

Start Shopify free trial

Try Shopify free for 14 days, no credit card required.

<h1>Build an online store for your business with your new skills.</h1><p>Shopify has everything you need to start selling, all in one place.</p>