Revenue vs. Profit – Which Matters Most?



September 22, 2021

To be financially successful in your business, which do you think matters the most, revenue or profit? As a business owner, you may be putting the extra time and effort into the wrong area! 

So, let’s talk about revenue and profit, and which you should be focused on in your business to ensure you have something to show for all your hard work at the end of the day. 

What is revenue? 

Revenue is the total amount of income generated by the sale of goods or services. This can also be defined as gross income or “top line.”

Your revenue is the money that you bring into the business and it doesn’t take into consideration any of the costs that might be associated with making money. 

What is profit? 

Profit is net income earned after subtracting all dollar costs from total revenue. This is your “bottom line” or what is left over after you subtract all of your expenses from your revenue. 

So which one matters most? Profit does! 

Watch this week’s video to dive deeper into this topic! 

Tips to Focus on Profit Margin

Build your profit margins up so no matter what your revenue is, you are getting what you need from the business. A business that brings in 7 figures but doesn’t have enough money to pay the owner a fair salary or save money for the future, doesn’t make sense. 

How can you focus on profit margin? 

  • Concentrate on your pricing to make sure what you are selling is priced in a way that yields good enough profit margins. 
  • Focus on your budget so you aren’t overspending and can afford all of your expenses. 
  • You must have your bookkeeping in order so you can check your number accurately. You need to be able to run P&L reports for the current period and previous period and understand what the data means. 
  • Set some KPIs and use that to determine how you are doing with your profit goals. 

To sum it up, profit matters! Set a goal to pay yourself a certain amount or save a certain amount, and work backwards to see how much revenue you would actually need to bring in to achieve your goal. 


It’s Time to Take Action! 

Now that you know profit matters, it’s time to take action!
Check out my 6-week training program, Chart Your Course to Financial Success. 

This will help you create the roadmap you need to increase business, work less, put more money in your pocket, and achieve financial success! 

Don’t wait, enroll today!

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