Is Your Distribution Business Actually Profitable? Profit and Loss Breakdown

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I constantly have conversations with potential clients who are in the process of acquiring distribution businesses. I always think to myself why in the world would anyone acquire a business in a category with so much overhead, and so little profit margins. It turns out that many of these distributors have amazing profit and loss statements. In this video we will break down what profit and loss statement is, we will learn the importance of a profit and loss, and we will show you what to look for when reading a profit and loss. This will be extremely beneficial for those of you looking to acquire a distribution business or those of you that have a revenue generating distribution business.

A profit and loss shows you the income, expenses and net operating income of a business. This document is designed to show the overall health of a business, and its future prospects. When purchasing a business, you should focus on ways to increase income, increase gross profit margins, and eliminate useless expenses.


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