I know somebody who runs a bookkeeping business. She works on her own running it out of her house. Her main expense is for office supplies. She has no employees, or office rent to pay in an office building.
It sure seems that most people are clueless about profit margins, or the various expenses involved in running a business.
It sure seems that most people are clueless about profit margins, or the various expenses involved in running a business.
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Indeed. Your simple example illustrates the fact that every business and industry has different characteristics.
Some businesses are more capital intensive than other. Some are cyclical. Some are heavily regulated. And risk profiles can be radically different. Myriad factors affect profitability.