🚫 Don't Start a Business Until You Understand these 6 Things 👇 1️⃣ Return on Investment (ROI) Formula 1: ROI = Net Profit / Cost of Investment (COI) x 100% Formula 2: ROI = (Net Profit - COI) / Cost of Investment (COI) x 100% Simply said: How much money are you making from the money that you invest? 2️⃣ Return on Advertising Spend (ROAS) Formula: ROAS = Revenue from Ads / Cost of Ads Simply said: Are you making money from ads and how much compared to investment? 3️⃣ Working Capital 1. Net Working capital = Current Assets - Current Liabilites 2. Working capital ratio = Current Assets / Current Liabilities Simply said: After you spend money on business obligations, how much is left? 4️⃣ Profit Margin 1. Net Profit Margin = Net Profit / Net Revenue x 100% 2. Gross Profit Margin = (Present value - COI) / COI (Cost of Investment) x 100% Simply said: Every time you sell something, how much are you profiting after EVERYTHING (expenses, taxes and so on) 5️⃣ Break-Even Point ...