05E. Profitability KPIs: Gross Margin

Episode 5 of Building Your Multi-Million Dollar Practice focuses on digging into KPIs that measure Profitability and how they impact your clients and your advisory services. We already went over a few of these, so now we’re going to focus on Revenue Per Employee, Cost of Goods Margin, Expense Margin, Net Worth, and Gross Margin. This is one of the top five KPIs for advisers to be monitoring because gross margin indicates the percentage of each dollar a business retains after expenses directly pertaining to the cost of the good or service sold. This is something you can monitor on a trending basis as well as periodical. The Formula: (Revenue + Cost of Sales) / Income