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0 “BLOOD-AND-BONE” CALCULATIONS OF THE CHINESE BUSINESS MINDSET
Chinese business owners don’t rely on theory or gut feelings.
They rely on simple, brutally practical calculations to make sure they survive first — and profit later.
These are 10 numbers they calculate again and again every day
— and every serious business owner must memorize them.
SURVIVAL CALCULATIONS
Break-even Point
“How many bowls, cups, or orders must I sell each day to start making money?”This number decides whether a business lives or dies.
Cash Flow “Is the cash on hand enough to pay rent, salaries, and suppliers next month?”Chinese business owners are obsessed with cash flow.
Paper profits mean nothing without real cash in the drawer.
PROFIT OPTIMIZATION CALCULATIONS
Gross Profit Margin After raw materials, how much percentage is left?Too low = prices too cheap or costs too high.
Food Cost Percentage For F&B, the “golden range” is 25–35%.Above that, profits are being eaten away.
Labor Cost Percentage Should stay under 20–25% of revenue.Go beyond that, and the system becomes bloated — profits disappear.
MANAGEMENT CALCULATIONS
Revenue per Square Meter Is your space generating money or just taking up rent?
Table Turnover Rate How many customers does one table serve per day?Higher turnover = higher efficiency.
CUSTOMER-BASED CALCULATIONS
Average Order Value (AOV) How much does each customer spend on average?Increase AOV = higher profit without more customers.
Customer Acquisition Cost (CAC) How much marketing money is needed to get one new customer?
Customer Retention Rate What percentage of customers come back?Chinese businesses treat repeat customers as living assets.
CORE LESSONBusiness is not emotional.
Behind the Chinese “owner mindset”
is an obsession with survival numbers.
No fancy degrees required —
just absolute mastery of these core calculations.
Whoever controls the numbers, controls the fate of the business.
THE PRACTICAL SOLUTION FOR BUSINESS OWNERSAll of these critical metrics are clearly explained in the book:
“10 Indexes That Determine the Fate of a Business”
Simple, not academic No accounting background needed Designed for shop owners, cafés, small and growing businesses Learn more at: https://www.smartlifebooks.This book helps you:
Understand gross profit and net profit correctly
Know your real break-even point
Detect where money is leaking
Make decisions based on data, not intuition
Many readers have escaped losses simply by understanding the right numbe