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Expenses
What it measures
The cost of running your business that isn’t tied directly to delivering what you sold. Things like rent, utilities, payroll, marketing, software, insurance and other overhead.
Why it matters
Expenses tell you what it costs just to keep the doors open. Loans and owner distributions are not included in your operating expenses. Divide your expenses by your gross profit dollars and multiply by 100 to see what percentage of your gross profit dollars is going towards just keeping your doors open.
Want help putting this number to work in your business? That’s exactly the kind of thing we set up together in coaching.