Do you feel like you work all day, yet see no real profit at the end of the month? You're not alone. Many micro and small businesses sell well but lose profitability through financial decisions that go unnoticed. Here are three clear signs it's time to check your business's financial health.
1. You mix personal finances with the company's cash flow
When business money pays for household expenses (and vice versa), you lose the ability to know whether your company is actually profitable. The result: decisions based on the feeling of “having cash on hand,” not on data.
Actionable tip: open a dedicated business account and pay yourself a fixed salary. Everything else is the company's money.
2. You sell a lot but don't know your profit margin per product
Selling more doesn't always mean earning more. If a product has a low or negative margin, every extra sale may be costing you. Knowing the margin of each product lets you decide what to push, what to adjust and what to stop selling.
Margin = (Selling price − Unit cost) ÷ Selling price
3. You don't know your daily or monthly break-even point
The break-even point is the sales level at which you neither earn nor lose money. Without that figure, you won't know whether the month is going well until it's too late to correct course.
Break-even point = Fixed costs ÷ Unit contribution margin
Tip: divide your monthly break-even point by the number of days you're open, and you'll have a concrete daily sales target.
Did any of these sound familiar?
At NEOMYPE we help you fix these issues with clear, actionable strategies. An economic diagnosis shows you where your business stands and which steps to take to grow in an orderly way.