When you run a small business, it is easy to get wrapped up in the day-to-day concerns at the expense of the big picture for your business.
Part of that big picture is knowing your operating margin.
Many small business owners generally know whether or not they are making a profit, but are they really on top of their income, expenses, and cash flow?
Business owners need insight into how financially stable their business is, and that includes knowing their operating margin.
Understanding this metric will help you determine how to increase profitability and stability by lowering operating expenses. Let's take a look at what an operating margin is and how to calculate it.
source https://www.emscorporate.com/news/what-is-an-operating-margin
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