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Gross profit, also known as gross income, is the profit a business makes after subtracting its costs from its total revenue. Subtracting your cost of goods sold from total sales will yield gross profit.
Net income is the last line item on an income statement and accounts for all costs and expenses, including taxes. Profit before tax will always be higher than net income, as it doesn't deduct taxes.
Three effective methods for valuing startups with no revenue are Comparable Transactions, Venture Capital, and Berkus. Comparable Transactions values a startup by comparing it to similar companies, but this is not always feasible if your startup is in a new category or has a highly innovative product.
