Managing for profit.

Profitability comes from two key elements:

• ensuring that your business is earning the correct gross profit on the sale of its product or services and
• controling the level of overhead expenses

The terms are more fully discussed before. Briefly, the gross profit is the sum left from the sales after payment for the cost of the goods sold. Overheads are the other expenses incurred by the business not directly related to the level of activity and the goods sold: instead they relate to the establishment costs and the financing and day to day running of the business.