Cost of Goods Sold, Gross Profit, and Gross Margin
The next concept that we need to understand is costs of goods sold (COGS) or cost of sales. Cost of goods sold indicates the cost of the goods sold during some time period (i.e., one month or 0ne year) and can be defined in several ways. COGS can be defined as the difference between goods [...]
Wholesale Markup versus Profit Margin
I was going to write about product pricing strategies and methods then realized there are several key concepts we need to understand first. The first of these concepts is the difference between wholesale markup and profit margin. These both refer to the same value but have considerably different meanings. And misapplying these terms can be [...]
The Benefits of Starting a Small Business Online
Owning and operating your own small business online can be a very rewarding and satisfying experience. Listed below are just some of the benefits you can enjoy as a small business owner. Work from home – No need to set the alarm to go off in the morning. No more hour long commutes to get [...]
Get legal: Start your business right
If you’re going to work with wholesale suppliers you need to be a legal business. There is no way around it. Wholesale suppliers cannot legally sell to anyone who is not a business entity and has a valid state seller’s permit. Getting legal is not difficult and every business that wants to be successful needs [...]
Types of Business Structures
There are seven types of business structures allowed under the law in most states. These are sole proprietorship, general partnership, limited partnership, “C” corporation, “S” corporation, limited liability company, and limited liability partnership. There is no perfect business structure. Each structure has its own advantages and disadvantages. The requirements for doing business in each state [...]
