What many small businesses may never calculate, however, is their business' profit margin, an essential figure for anyone trying to find ways to increase the bottom line. … Each industry generally has its own average profit margin due to the differences in costs and materials needed for different products and services.

Average Business Profit Margins. The average net profits of a small manufacturing wood products business, with $2 million in revenue annually, according to the website "Biz Stats," is 14.56 percent per year. Medical equipment and suppliers, with $2 million in revenue, have a net profit margin of 26.95 percent annually.

Aug 2, 2017 – That's about the time where the business has to start hiring more people. Each employee in a small business drives the margins lower. One study found that 90% of all service and manufacturing businesses with more than $700,000 in gross sales are operating at under 10% margins, when 15% to 20% are likely ideal.

May 24, 2017 – Operating profit margin is one of the key profitability ratios that investors andysts consider when evaluating a company. Operating margin is considered to be a good indicator of how efficiently a company manages expenses, because it reveals the amount of revenue returned to a company once it has …