Get to know your numbers.
15 practical guides with worked examples, clear formulas and next steps. Understand what the result means before making a business decision.
Profitability
Why a 50% markup is not a 50% margin
Margin and markup describe the same gross profit from different starting points. Mixing them up can quietly undermine a pricing plan.
PRACTICAL GUIDEFind the sales volume that covers your costs
Break-even is a useful first milestone: the point where contribution covers fixed overhead. It is a threshold, not a promise that demand exists.
PRACTICAL GUIDEHow to calculate profit margin without mixing up costs
A margin percentage only becomes useful when you know which costs were subtracted. Start with a defined profit measure, then divide by the revenue that produced it.
Sales Planning
Plan from profit, not just revenue
A revenue milestone can look impressive while leaving very little in the bank. A profit target starts with what the business needs to keep.
PRACTICAL GUIDETranslate a sales target into a traffic plan
Traffic has value when it turns into the action you need. Conversion rate connects a sales goal with the size of the audience required.
PRACTICAL GUIDEHow to build a simple monthly sales forecast
A useful forecast connects a sales volume assumption to a price and explains why that volume might occur. Start with a transparent baseline before introducing complex growth rates.
E-commerce
Find the ROAS your margin can support
Revenue divided by advertising spend is easy to calculate. Deciding whether that ratio is healthy requires looking at contribution and attribution.
PRACTICAL GUIDEHow to calculate e-commerce profit after fees
Order revenue is the beginning of a profit calculation. Product cost, fulfilment, fees, returns and acquisition costs determine what is left to cover overhead.
PRACTICAL GUIDEHow to set profitable prices with explicit volume assumptions
A price must cover delivery economics, but customers also decide how much to buy. Compare price and volume together rather than choosing the largest markup.
Business Finance
Build an MRR goal that accounts for churn
Subscriber growth is a moving target when some customers leave every month. A simple churn assumption helps distinguish gross acquisition from net growth.
PRACTICAL GUIDERevenue vs profit: why higher sales can leave less money
Revenue measures sales value. Profit subtracts defined costs. Cash measures money received and paid. Confusing these three makes it difficult to understand a growing business.
PRACTICAL GUIDEHow to calculate customer acquisition cost
Customer acquisition cost connects the resources spent winning customers with the number of first-time paying customers acquired. Its usefulness depends on matching those two quantities.
PRACTICAL GUIDEHow to estimate subscription lifetime value responsibly
Lifetime value is an estimate of future customer economics. A compact formula can be useful for a stable subscription model, but it should never disguise uncertain retention as guaranteed profit.
PRACTICAL GUIDEHow to calculate cash runway and recognize its limits
Cash runway estimates how long available cash can support a recurring net cash outflow. It is a liquidity model, so start with cash movements rather than accounting profit.
PRACTICAL GUIDEHow to calculate ROI for a small business project
A simple return on investment compares the net benefit of a project with its cost. It is useful for an initial comparison when the scope and time period are clear.