Gross Profit and Net profit are two terms that a entrepreneur must understand very clearly.
Gross Profit = Sale(100) - Purchase(90)
In this case the Gross Profit is 10. But your gross profit is not your net profit, To ascertain your net profit you must deduct all rexpences from your Gross Profit. For example if you employ 2-3 people you must deduct their salary from the Gross Profit, Rent that you, Electricity Bill , Paper, Stationary, Internet Etc, basically every expense that you incur because of running your business must be deducted from your Gross Profit. After deducting your expenses from Gross Profit you arrive at your net profit.
Gross Profit = Sale - Purchase
Net Profit = Gross Profit - Expense.
A smart business man always knows what his net profit is and based upon that he modifies his lifestyle.
Gross Profit and Net profit are two terms that a entrepreneur must understand very clearly.
Gross Profit = Sale(100) - Purchase(90)
In this case the Gross Profit is 10. But your gross profit is not your net profit, To ascertain your net profit you must deduct all rexpences from your Gross Profit. For example if you employ 2-3 people you must deduct their salary from the Gross Profit, Rent that you, Electricity Bill , Paper, Stationary, Internet Etc, basically every expense that you incur because of running your business must be deducted from your Gross Profit. After deducting your expenses from Gross Profit you arrive at your net profit.
Gross Profit = Sale - Purchase
Net Profit = Gross Profit - Expense.
A smart business man always knows what his net profit is and based upon that he modifies his lifestyle.
wow you spent some time on this. Great work.
Gross is the amount you start with, it has no deductions or anything taken from it.
Net is the amount you end up with in your hand after everything has been taken out.
So for income, in terms of salary for example, your gross might be $1,000
After they take taxes, medical, christmas club, life insurance, pension, etc out, you end up with a NET of $582.23
Stocks/investments/crypto can also have taxes taken from them, broker fees, etc. The same terminology applies
Your Steem has a GROSS value of $1,000 but after you cash out into USD you only receive NET $854.45 for example.
Personally I always thought the terms were backwards.
It's always GROSS how little I end up with and I need a NET to keep as much of the original value as possible.
But hey, I'm a strange one