IN DEPTH - Guidelines for Entrepreneurs Explained, pt. 7

This is the seventh in a series of In Depth articles examining Norm Brodsky's 'Top Ten Guidelines for Entrepreneurs.'

• Don't focus on the top line.  Gross margin is the most important part of an income statement.

Too often, stamping business owners focus on sales as the primary indicator of their success.  The problem is, sales is not necessarily an indicator of profitability.  In fact, I know of several stamping business owners who are among the top sellers in their company, but are nowhere near as profitable as other SBOs who sell far less.

Gross margin, the profit you make after covering your costs, is a much more important, and more telling, number.  It's the number that's going to determine how long you'll stay in business.  And I promise you this:  if you don't know how much money you're actually making in your stamping business, you're not making as much as you think.

So, if you're not currently keeping track of your profit, now is a great time to start.  You'll make more money, and you'll be in business a LOT longer!