November 14, 2017
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.
Need a bookkeeping software to help you calculate your profit?
Check out my free bookkeeping software guide. It’s my in-depth research into four of the top bookkeeping software, pros, cons, prices, and features, all in one handy place. There’s even a free software option! Click below to get immediate access!
Related Posts
Bookkeeping software is awesome.
Well, maybe it’s only awesome if you’re a huge nerd like me.
Anywho, your software can be hooked up to so many of the services that you use, Acuity, PayPal, Stripe, so many options.
But sometimes having so many connections can be overwhelming.
Especially when you consider how many times you’ll see the same transactions.
Read MoreTechnology is amazing until it isn’t.
The Roomba that spreads dog poop all over the house. The cell phone that pocket dials your ex. The autocorrect that makes your convo with your mother-in-law super awkward.
But on the whole, technology has improved our lives immensely.
When it comes to your business the technology options are endless.
Email service providers, funnels, ads, schedulers, bookkeeping software…all tech options to make our lives more convenient.
So how do you troubleshoot when something goes wrong?
Here are a few things that can go wrong when you download your transactions into your bookkeeping software and how you can fix them.
Auto bill pay, automatic car washes, online grocery shopping.
I’m all for services and conveniences that make our lives easier.
And if it’s something that makes your bookkeeping faster, ultimately allowing you to get back to serving your clients faster then I’m super all in.
Read MoreAh, the pure joy when your bank reconciliation matches.
The complete satisfaction when every single transaction is categorized.
No?
Just me then?
Even if you’re not as ridiculously Nerdy and number-crunchy as me there are still several reasons to love bookkeeping.
Or at the very least to love what it provides.
Read More