How do you keep score?

[Former_Member]

I am working through my data for 2011 and I don't know whether it is better to focus on

number of sales
gross revenue in $
net profit (revenue - transaction costs & fees - material & supplies)
% profit (profit / gross )
income rate (profit/ hours)

And for any of these, how much is enough? What % profit is considered healthy, for example?

:-)
Bits

[Former_Member]

Net profit is definitely #1 in my book.

From there you can set a goal and work backwards to break down the rest of those categories.

[Former_Member]

Hi Jacque!

Do you set a target for your net profit each year? Or do you look for a certain rate of growth?

:-)
Bits

[Former_Member]

good question. I'd like more insight on this as well.

[Former_Member]

Bits,

This is my first full year in business since I started as a hobby. So yes, we I start my financial planning for my business I will work with a net profit goal and work backwards to breakdown what I need my sales, percentages, and margins to be.