Getting your head around what profit really is is essential to your business success.
Profit is far more than the dictionary definition of “The surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed.”
This is what profit really is …
• Profit ensures that you can feed your family
• Profit ensures you can go on holiday
• Profit ensures you can grow your business organically
• Profit helps you go to the bank and ask for funding with confidence
• Profit provides a buffer to be able to pay expenses when you’re quiet
• Profits increase your employees standards of living through pay rises, performance bonuses, or a few days a year extra holiday.
• Profit will give you the life you’ve always wanted.
Yes, profit is the excess of cash left over from a transaction after sales minus cost of sales. But the above list is really what profit is all about.
Getting your head around what profit really is, is one of the most valuable uses of your time … ever.