Profit is a Problem

This is the first article on “profitability”—a guide to help understand and develop a true understanding of its impact on financial wellness, revenue growth, peace of mind and freedom to do about whatever you want to do.   

But let’s start this out with the truth: profit is a problem.  Most of us have a basic understanding of what profit is, the difference between revenue and expenses, the bottom line or what is left over at the end of the year.  It is also a number that we have to pay taxes on (which impacts us more than we realize).  It is more or less a number that the accountant gives us that other people need: taxing authorities, lenders, investors, shareholder and even vendors but the business owner doesn’t really get much value or benefit out of it.  It is a necessary evil dumped on the business owner for the benefit of others.  It isn’t as important as money in the bank, the difference between a/r and a/p or cash that will be collected next week, profit really isn’t an important number to most business owners.

In the next few articles, we are going to examine what profit is, what impact it has on the business, the mental health of the business owner and how this one thing, impacts the forces around the business,

If you have any specific issues or questions about business profitability, send me an email with that question and I will include it in one of the articles.

Have a great week.

Dan Lacy

The Prophet of Profit