Small Business Tip: Focus on Profit, Not Just Revenue

Top-line vanity, bottom-line sanity.

One of the best lessons I’ve learned as a business owner came from a story a business coach once shared with me—and it completely shifted how I think about success.

He was working with a business owner—we’ll call him “Chad.” Chad was fired up and bragging about hitting $300,000 in revenue that year. On paper, he looked like he was crushing it. But when the coach dug into Chad’s financials, he uncovered the uncomfortable truth.

Despite the high sales numbers, Chad was actually losing money every single month. Between a leased Tesla, a flashy office space, overpriced marketing packages, and a long list of business expenses (many of which didn’t move the needle), he was slowly slipping into debt.

That’s the danger of chasing revenue and ignoring profit.

Revenue is how much money you bring in.
Profit is how much you actually keep.

So many small business owners get caught up in top-line numbers, especially in the social media age where people love to post big sales wins. But if your profit margin is thin—or worse, negative—those revenue numbers mean nothing.

Here’s how to shift your mindset and focus on what actually matters:

• Track your net profit monthly: That’s revenue minus all your expenses.

• Identify what’s profitable: Which products or services bring in the most value? Double down on those.

• Trim the fat: Cut costs that don’t directly support growth or efficiency.

• Watch your margins like your business depends on it—because it does.

Focusing on profit gives you the breathing room to invest in your business, pay yourself well, and actually enjoy the entrepreneurial journey.

Need help reviewing your numbers or creating a plan to improve your profit margins?

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Let’s start Doing Business Right. 💼💰