$1 million in revenue can hide a real problem if you’re not watching one number: labor. Over 23% and you’re bleeding money quietly, invisible on the top line, very real on the bottom one. Reduce that number and your gross profit finally has room to cover overhead and produce real net profit.
@officialchadpetermanTranscript
You're looking at your P&L and you did a million dollars, for example, in a month. Here's the number that you need to make sure that you are budgeting under. That number is labor. How much money are you paying out to fulfill that million dollars of revenue? If you are over this number right here, 23%, you are quietly bleeding out. We need to reduce this number down in order to get the GP that is going to support our overhead and produce net profit at a very healthy level.
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