Margin

Margin is a financial metric that shows how much money a business keeps after subtracting certain costs from revenue. It is often expressed as a percentage and used to measure profitability, pricing efficiency, and financial performance. Common types of margin include gross margin, operating margin, and net profit margin, each showing a different level of profitability after different costs are considered.

For growing companies, margin is important because it helps leadership understand whether the business is earning enough to cover expenses, reinvest, and scale sustainably. Strong margins can give a company more flexibility to invest in marketing, improve brand strategy, increase paid media, or build a stronger growth strategy. Lower margins may signal the need to review pricing, reduce costs, improve operational efficiency, strengthen positioning, or increase perceived value. When tracked regularly, margin helps businesses make smarter decisions about pricing, profitability, investment, and long-term growth.