What is a good net profit margin for a small business?
Asked 4 years ago
What is an adequate profit margin for a business that has just started? Because I've just launched my product for the first two months, it's sitting at 5%, and I feel like it's not moving.
Rhys Hensley
Tuesday, February 08, 2022
Generally a 5% profit margin is low while a 10% profit margin is healthy and a 20% profit margin is high. Since your business is still new give it time to grow and compare profit margins based on industries instead of generalizing.
For example, the entertainment industry has a good net profit margin of 11.73% while online retail is 4.57%.
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