Finance
Monthly
P&L Tracking
Review your numbers every month
✓
Revenue vs Cost
Know exactly where money goes
10%+
Net Margin Target
Minimum for a sustainable D2C brand
✓
Investor-Ready
Clean financials = investor trust
| Line Item | Category | Formula | Benchmark |
|---|---|---|---|
| Revenue | Income | Total order value (including shipping) - Returns | Growing 15%+ MoM |
| COGS | Cost | Product cost + Packaging + Shipping to customer | 40-60% of revenue |
| Gross Profit | Profit | Revenue - COGS | 40-60% gross margin |
| Marketing | Cost | Ad spend + Influencer + Content creation | 15-30% of revenue |
| Operations | Cost | Salaries + Platform fees + Tools + Rent + Miscellaneous | 10-20% of revenue |
| Net Profit | Profit | Gross Profit - Marketing - Operations | 10%+ target |
1. Is gross margin above 40%? If below 40%, your product cost or packaging cost is too high. Negotiate with suppliers or raise prices.
2. Is marketing spend under 30% of revenue? If above 30%, your ads aren't efficient enough. Lower CAC or improve conversion rate before spending more.
3. Is net margin above 10%? If below 10%, either your costs are too high or your pricing is too low. Both need fixing before you scale.
4. Which channel has the best ROAS? Compare Meta, Google, and organic. Double down on what works, cut what doesn't.
5. Are we growing month-over-month? Flat revenue means something's broken. Growing revenue with shrinking margins means you're buying growth unsustainably.