“A service-based company should be making 15% net income, 10% is the break-even.” - Jody Grunden

The finer details of this episode

• Why 10% is the new break-even
• How profit margins get smaller as your company gets bigger
• The sections of an income statement and why they are important
• How to calculate your actual gross profit and determine what it should be
• How much to invest in your employees outside of their paycheck
• The difference between overhead cost and production cost
• What you can do to increase your gross profit
• How to prepare for a recession

Episode resources

• Summit CPA website - www.summitcpa.net
• Email us with questions/comments- [email protected]