"Generating revenue" is not the same as "making money". Net margin — what remains once everything is paid — is the true indicator of a company's health. And yet, in the coaching I provide, 6 out of 10 entrepreneurs don't know theirs.
Average net margins by sector in France
These figures come from INSEE data and sectorial studies published in 2025:
| Sector | Average net margin |
|---|---|
| Consulting and business services | 15-25% |
| IT services | 12-20% |
| Regulated professions | 25-40% |
| Food retail | 2-4% |
| Non-food retail | 4-8% |
| Traditional restaurants | 3-8% |
| Fast food | 8-15% |
| Construction — structural work | 3-6% |
| Construction — finishing work | 5-10% |
| Craft production | 8-15% |
| E-commerce | 5-12% |
| Professional training | 15-25% |
These averages hide very large disparities. A restaurant can achieve 12% margin with good management and 0% with poor management, in the same neighborhood and with the same number of covers.
Why your margin is too low (the most common causes)
You underestimate your real costs. Time spent on administration, unpaid travel, free revisions, worn equipment not replaced. All these hidden costs erode your margin without you realizing it.
Your prices are too low. The creator's reflex is to align with the cheapest competitor. This is a strategic mistake. Unless you have a structural cost advantage (volume, automation, location), low-price positioning is a dead end.
You don't segment your customers. Not all customers are equally profitable. A customer representing 30% of your revenue but generating 60% of your problems and free changes destroys your margin.
You don't have a dashboard. Without monthly tracking of your indicators, you're flying blind. When you realize the problem, it's often too late.
5 concrete levers to improve your margin
1. Increase your prices — the most direct and underused method. A 5% increase on a revenue of 200,000 euros means 10,000 euros more in margin, at constant costs.
2. Eliminate unprofitable customers — identify the 20% of customers taking 80% of your time and energy. Raise your rates for them or end the business relationship.
3. Automate repetitive tasks — invoicing, follow-ups, standardized quotes, appointment scheduling. Every hour saved is an hour you can bill or invest.
4. Negotiate your purchases — change suppliers, bundle your orders, negotiate volume discounts. On recurring purchases, even a 3% reduction significantly impacts annual margin.
5. Develop additional sales — the customer who has already bought is your best opportunity. Acquisition cost is zero, trust is established. Offer complementary services, maintenance, updates.
A well-structured business plan helps you project your margins over 3 to 5 years. If you don't have one yet, now is the time to seriously consider it.