� First - you need to know your ​Gross Profit Percentage for a specific time period. I recommend monthly, quarterly and EOY ( end of year). This is very important for business owners, as it keeps you from guessing finances and trying to figure out local and state taxes on your business. For startups this allows you to do research before you look for investors and money to help fund your business. It will help you save on materials, production, employees by knowing your gross profits percentage. Remember preparation and knowledge is key to success. To determine the business's Gross Profit Percentage: 1. How much did you make? Let's say you made $10,000 in a month. Your cost for employees, insurance, rent, and other costs were $5,000. 2. Determine Gross Profit for the month - Total profits made for the month $10,000 - Monthly Costs $5,000 = $5,000 3. This is your Gross Profit Percentage - $5,000 / $10,000 X 100 = 50%
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