Welcome to another weekly episode of ‘I Hate Numbers’ where we look at The importance of profit, as well as what it is. The ‘I Hate Numbers’ podcast wants you to get acquainted with your best business friend. The friend that won’t lie to you, the friend that you need in times of turbulence, times of calm and times of prosperity. That friend is your numbers.
Where profit is, loss is hidden nearby, Japanese Proverb.
In this week’s podcast I look at profit, and then go one step further and talk gross and net profit.
Importance of profit
Your business journey map should have profit as a destination point. If your destination is set for sales alone, then change your route or abandon your journey, it’ll end in tears otherwise.
Cash is pretty important as well, sales though, well it’s like ‘all fur coat and no knickers’
Gross and net profit
In the world of numbers gross doesn’t mean unpleasant or disgusting – though making a rubbish gross profit is. In this podcast I talk about the relationship between gross with net profit.
When you set your numbers dial to profit, refine the calibration and mark it in terms of gross and net.
Understand them and keep an eye on them if you want your business to carry on, survive and thrive. If you don’t do this then you are missing a trick, and your business can suffer and lose money
Revenue is vanity, profit is sanity, cash is reality
“Don’t waste all your energy and focus on sales alone, shift your thinking to think about your profits” Mahmood Reza
Who doesn’t love making a sale? I certainly do. It’s like a legal dopamine rush, that elation and feeling of happiness. Be very aware though. If you are not making profits, then that feeling of happiness can quickly make you feel like you want to pull the head off a teddy bear, or punch Bambi.
If that trend continues then all those dreams of yours will stay unrealised, unfulfilled and in the distant horizon.
What next
Think profit, more than sales if you want to make your business to survive and thrive.
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Links
https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288
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https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins
https://www.stitcher.com/podcast/proactiveresolutionss-podcast
https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/