So… What is a Profit??

So simple, yet so misunderstood

What is Profit?

Pretty easy question to answer, right?
It’s the difference between revenue generated and money spent (expenses).

Revenue - Expenses = Profit.

So where does it go?

Well, it HAS to be distributed to the shareholders or business owner…. Or it has to stay as cash in hand in the business. Otherwise, it’s NOT PROFIT.

If you “reinvest” profits back into your business erased your profits. That cost becomes an expense.

If you spent all your profits, your business is not sustainable. You are overspending and are NOT profitable.

If you find a way to spend it, it isn’t profit. It only remains a “profit” if it stays in the bank or gets distributed to shareholders.

I love this explanation by my favorite biz author @mikemichalowicz in “Fix This Next” —

“Profit is necessary foundation of any business and a reward for taking on risk.”

Are you clear on your PROFIT? Do you make a profit? Spend it?

I help women in chiropractic have profitable, sustainable businesses by simplifying the numbers in their business using the Profit First method. Does this sound like you?

Dr. Holly has been coaching and mentoring chiropractors in implementing Profit First since first implementing it in her practice in 2017. With an extensive background in health care administration, experience as a small business owner and clinician, she provides accountability and support in a simple way.

Dr. Holly, Business Coach ChiroNumbers.com

Visit BeyondYourBooks.com for Profit First Accounting & Bookkeeping services