Today we are going to be talking about why profit is queen and revenue is irrelevant.
(Okay so I lied.)
Revenue is relevant but only in terms of how much profit it can produce. For instance, you cannot have $2,000 in profit, if you aren’t making more than $2,000 in revenue and that is the only reason why revenue would matter.
I see a lot of coaches on social media, especially on Facebook, who are always talking about hitting a $5,000 month and how you can too (or a $10,00 or a $15,000, whatever it is)! They’re so excited and they get so pumped up about hitting that big milestone or revenue but they never even talk about the expenses or the profitability of their business-
Profitability is huge! It’s just never even mentioned! I think that by just going off of revenue and never seeing what their profit is, they're missing part of the story. There’s no way to possibly know if your business is healthy or if it’s something you even want to emulate without knowing if it’s actually profitable.
You don't know if they actually get to have the financial lifestyle they want to have, if they’re saving for taxes, paying for taxes, what tax bill they have at the end of the year (overpaying, not paying enough)
It's too many things you don't know just by looking at their revenue.