I’m trying to get my mind around my finances and want to put this in terms I, someone who isn’t bad at math but isn’t super, can understand. Something like the title says - for every dollar I spend in X service area of my business, I get $Y back."

So for an area of my business, let’s say that I sold $100,000. With COGS and salary, it cost me $40,000. My gross is $60k, or 60%.

So back to my question, in this case is it “for every $1 I spend in this area, I get $1.40 back”? I just can’t get me head around this, so thanks for the help.

** and yes, I know there are more things to consider like other overhead and operating costs, but I’m trying to keep the example simple.

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  • CustomSawdustBEnglish
    1·
    10 months ago

    I like to break things like this down into a dollar figure. Typically i shoot for a 100% return on every dollar spent, but it can 70-80% depending on circumstances. Rarely does a project go so bad that i make less than 50%.

    • damon129OPBEnglish
      1·
      10 months ago

      We’re a med spa, so i think in terms of service areas, but I do get what you’re saying . Ty