The profit margin for small businesses depends on the size and nature of the company. Overall, however, a healthy profit margin for a small business tends to range from 7% to 10%. However, keep in mind that some businesses may have lower margins, such as retail or food-related companies. This is because they tend to have higher overheads.
A gross margin of 33% simply means that your total overhead and profits equal 33% of your total sales, and labor costs account for 67% of your total sales.