Profit, Margins & Break-even
Understand why the revenue trap: many local businesses celebrate revenue milestones without tracking profitability.
5
Lessons in this module
Revenue vs profit
Understand why the revenue trap: many Nigerian businesses celebrate revenue milestones without tracking profitability.
Fixed vs variable costs
Understand why early-stage risk management: uncertain revenue + high fixed costs = dangerous.
Break-even analysis
Understand why break-even as viability test: if break-even requires 500 customers in a market of 200, the business cannot mathematically work.
Gross margin explained
Understand why margin as resilience buffer: at 90% gross margin, revenue can fall 40% and still cover significant fixed costs.
Reading a P&L
Understand why p&L layer cake: Revenue minus COGS = Gross Profit (production efficiency measure).
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