Don’t confuse sales with profit. ₦1 million in sales means little if your expenses are ₦950,000.
What to do
- Separate revenue from cost of goods, operating expenses, fees and delivery costs.
- Calculate gross profit per product before judging which items are worth pushing.
- Review net profit after recurring business expenses before deciding what the business can afford.
Watch out for
A large sales figure is not proof that the business is doing well. High-volume products can still destroy cash if their margins are too thin.
Example
₦1,000,000 in monthly sales with ₦950,000 in stock, delivery, wages and operating costs leaves only ₦50,000 before any additional obligations.
Presency helps merchants keep the sales side of the business organised, making it easier to compare what came in with what the business spent.
Start selling free