
GUT CHECK!
Gross Profit for a company must be positive. Your Gross Profit is your Income – COGS. COGS, or Cost of Goods Sold, is everything you need to make your product. It is labor to produce your product or service, materials to make your product, etc. For most companies it is not administration, and it is not “expenses” like rent, utilities and trash. For a list of typical COGS and expenses
click here.
Congratulations! You are one step closer to profitability!
It is costing you more to make the product than it is worth to do so.

This is a critical point to stop and reconsider your business. Your options are to charge more for your product, or make it for less. |