Revenue is Vanity, Profit is Sanity
You tell people you did $1.5 million last year. It sounds impressive. Nobody asks about profit.
Your bottom line growth matters more than your top line. Your cash flow management depends on profit, not revenue.
Here's what nobody tells you: society celebrates revenue. "We're a seven-figure business" sounds better than "We made $200K profit."
But which one pays your mortgage? Which one funds your retirement? Which one creates the freedom you started this business to achieve?
Revenue is vanity. Profit is sanity.
Most business owners make daily decisions that prioritize activity over profitability. They chase the impressive revenue number. They celebrate being busy. They brag about how many customers they have.
Meanwhile, they can barely pay themselves.
Your profitability strategies must start with a fundamental principle: the purpose of a business is not to be busy. It's to create consistent profit that funds the owner's desired lifestyle.
This seems obvious when written down. Yet you see it violated everywhere. Business owners working 80-hour weeks. Taking every project. Competing on price. Chasing volume.
All to hit a revenue number that means nothing.
Your profit margins determine your lifestyle. Your financial performance determines your freedom. Your earnings improvement determines whether you built a business or bought yourself a demanding job.
Stop celebrating revenue. Start celebrating profit.
Stop chasing customers who demand low prices. Start attracting customers who value premium service.
Stop being busy. Start being profitable.
The business owner doing $1.2 million at 35% margins takes home far more than the one doing $2 million at 20% margins-while working fewer hours and dealing with better customers.
Business Owners hire Next Step CFO to double and triple their profit using business and financial strategies that their competition isn't doing.
