When you’re first starting out as an entrepreneur, it can be easy to see all the revenue coming in and think you’re set when it comes to profits. However, if you’re not sure how much money your business makes versus what costs are required to keep it running, you won’t be able to set an adequate operating budget.
An operating income formula enables you to determine precisely how much money your business earns after expenses. In this article, we’ll talk about what this equation is and how it works. We’ll also go over some tips to keep in mind when using it.