Understanding operating profits helps you make better and informed business decisions.  If you are serious about business, then it’s important to understand key financial concepts like operating profit.

Small businesses, arts organisations and social enterprises can often overlook their operating profit when it comes to budgeting and long-term planning. To make the most of your resources, it’s important to understand what this term means.

This video will break down some key points about operating profit and provide examples of how you can use this information for your business or organisation.

What is operating profit

This figure tells you how much money your business earned from its core operations, after deducting the costs of goods sold and other associated expenses. By Understanding operating profit, you can see whether your company is generating a healthy return on its own activities. And if not, you can identify areas where changes need to be made. So let’s take a closer look at what operating profit is and how you can use it to improve your business performance.


Operating profit is an important metric, Furthermore Understanding operating profit is important help power your business forward. In this video

  • Firstly, I explain what it is
  • Secondly, how we calculate it
  • Finally, why it’s so important.

Are you using operating profit as a measure in your business? If not, I encourage you to start. It can be a powerful tool for understanding how well your business is doing and where improvements can be made. Thanks for watching!

And if you’re still feeling lost or don’t know where to start, our team at I Hate Numbers and out sister company Numbers Know How are here to help.

Are you ready to have an easier and more rewarding relationship with your numbers?  My book, I Hate Numbers helps you get there.

This book is based on my 27 + years in business, helping thousands of businesses survive and prosper.  It shares tips and shows you how to have a financially rewarding relationship with your numbers, Furthermore, my book will help with that battle  between the ears, that all business owners experience.  Learn more and buy my book today!

Get in touch with us to help make your life easier and stress free. Contact us if you need help figuring out and sorting your numbers, creating your future financial story plans, your tax , payroll and other accounting and business matters.