An old saying says revenue is vanity, and profit is sanity.
I know you’re not the next start-up being funded by endless money and trying to chase the purple unicorn.
In other words, you’re an actual real business.
I’m often asked how we can run a business focused on growing businesses and still say revenue is vanity.
Here’s why. Following the 6 Steps to an Amazing Business (TM), and The 5 Ways System (TM) creates a baseline of profitability.
From there, growth is always focused on making more money.
Every time you hire someone, it should facilitate more profit.
Every time you invest in a marketing strategy, it should make more profit.
Every strategic decision you make should be focused on maintaining or improving your profit while you grow.
Every single one.
A successful, long-term net profit margin? 15% +
Less than that, and you probably don’t make enough to invest in your business regularly.
At some point, your margin will peak. If you go higher than that, you’ll make it lucrative for competition, so we watch for that, but if you’re less than 10%, there is improvement possible and necessary for your business.
Profit – not revenue. Be clear on why you’re here.
