Gross Profit (Entrepreneurial Finances) - Definition, Examples, Advice | Bolder Money

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Definition

Finding out how much money remains after paying for the basic cost of making a product. A higher gross profit means the business earns more on each sale.

What to consider

Include all operating and non-operating expenses.
Compare net profit over time.
Use net profit to gauge business sustainability.

Real world scenarios

A startup in Denver determined its net profit after deducting all expenses, including overhead and taxes.
A small business owner reviewed net profit quarterly to decide on reinvestment strategies.
An entrepreneur used net profit margins to evaluate overall business performance.

Related terms

Entrepreneurial Finances

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