Business owners tend to talk about their successes in terms of revenue…
And sometimes it is more like which guy has the biggest…you know.
“I have so much revenue.”
“Well, I make 6-figures.”
“Oh yeah? I make millions!”
Sure, revenue is part of the equation…
But what people don’t talk about enough is profit.
I have met a variety of 7-figure owners who bring home $200,000-$300,000 a year.
That seems like a huge discrepancy to me! (and probably not something to brag about)
For some reason, people have gotten it into their minds that revenue is sexy.
But, what’s really sexy…is profit.
I have made it my mission to uncover the hiddenness of this idea that we are all about revenue.
Because a business owner really needs to be concerned about profit.
How much money are you making?
How much is your business impacting your ability to live the lifestyle you want?
How good are you at managing your expenses?
Profit is about managing your expenses compared to what you bring in.
But, beware, if you are going to talk profit, you really need to track.
And you can’t just track the money coming in.
You need to know your operating expenses and payroll.
You need to constantly look and ask, “Is this the best use of my money?”
One book has really impacted the way I look at my numbers and my clients.
It is called Profit First, by Mike Michalowicz.
And it is awesome.
Reading it, you really start to see that if you aren’t making a profit you aren’t really in business.
You just have a job.
And maybe not even that.
At the best you are breaking even and at the worst you are pouring money into a business that is eating your resources. (Gross.)
Trust me, profit is where it’s at.
Do you have any tools you use to track profit? Please share them in the comments.
Until then…stay passionate!