Why Profit Matters, 4 Points You Need to Know
Profit is the most important number in your business.
Followers, sales, email subscribers….all important numbers.
But without profit, you don’t even have a business.
You have a hobby.
Businesses that make profit stay open, businesses with no profit eventually shut down.
So….what exactly is profit?
It's not sales
Many people confuse profit with sales/revenue. But they are two drastically different things.
The money that you collect from customers for providing a service is considered Sales.
Profit is what you have left after you take that money and pay all your expenses.
If you’ve got sales of $10,000, but you spent $9,900 to do it, things aren’t going so well. Your profit is low.
Your revenue has work to do
Sales are fantastic, they are the lifeblood of a business.
But that money has work to do!
It needs to pay for your supplies, marketing, taxes, website etc.
Focusing on profit instead of sales helps you to see both sides of the equation.
You can start working on growing sales and cutting costs so that you can take more money home to your family.
No profit, no business
What is a business without profits?
It’s out of business.
You have to be able to cover your business expenses, save for taxes, save for emergencies and then have something left over.
Without these things, you’ll be out of business pretty quick. Profit is vital.
What you take home matters
At the end of the day, you’re in business to make money.
You need to support your family, and that matters.
You have an obligation to your family that trumps everything else.
Never feel guilty for making a profit, because you’re not just making a profit, you’re providing a service and changing lives.
Without profit, you don’t have a business, and without a business, you can’t help others.
Profit matters.
Your business matters.
You matter.
Keep kicking butt and taking names, you’re changing the world along the way.
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