Introduction to COGS - Cost of Goods Sold - Part 10

Learn the fundamental concept of COGS (Cost of Goods Sold) in this 10-minute entrepreneurship video that breaks down one of the most critical financial metrics every business owner must master. Discover what COGS represents as the true cost of producing or delivering your product or service, including materials, manufacturing, packaging, labor, and delivery expenses. Understand how COGS differs from operating expenses and fits into your income statement structure. Follow step-by-step calculations for both product-based and service-based businesses while learning to avoid common estimation mistakes that new entrepreneurs make. Explore how your cost structure directly impacts pricing strategy, profit margins, and overall business profitability through practical examples and simple tracking templates. Master the relationship between COGS and gross profit to make informed decisions about scaling, identifying inefficiencies, and improving your bottom line. Gain the financial literacy needed to confidently analyze your cost structure and build a financially sustainable business, whether you're selling handmade products, digital goods, or services.