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<p>[QUOTE=&quot;Chris Robinson, post: 1981167, member: 71904&quot;]Sounds like you have done a little business admin. I am a site noob, so I will try to tread lightly here. Business admin is a pretty boring post topic anyway, so most won’t want to read.</p><p><br /></p><p>10% NET PROFIT for a small business may be fair (though not optimal), 10% markup is not! (particularly from an annual perspective). It is not uncommon for a company to have gross margins over 40% and still only net 5% before taxes.</p><p><br /></p><p>Calculating overhead and break evens will have less impact after a certain level of revenue has been met, but I would never gross 10% on anything unless I was in a dire cash flow situation. If you, as a small-business person, allow yourself to succumb to the temptations of low margins for quick turnover, it will only serve to justify even lower margins when cash is tight. There are many reasons why most businesses fail, and this is one of them.[/QUOTE]</p><p><br /></p>

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