When I have Q&As at speaking events and during webinars, I always ask what business owners are most concerned about. The usual answers: Customers, revenue, leads, more time, more freedom from work.
But rarely does someone stand up and say, “I want more profit.” (Spoiler alert – this should be top of mind, but it isn’t.
I kinda get why, too.
Somewhere along the way, profit got a bad reputation. People started associating it with greed, excess, or taking more than their fair share. In most business circles, talking about profit feels uncomfortable. Talking about revenue feels exciting. Talking about growth sounds ambitious. Talking about profit? Not so much.
But why? Profit isn’t greed. Profit is stability.
The Most Dangerous Lie in Business
One of the worst things we tell ourselves is that if we can make just a little more money, everything will work out.
I used to believe that too. In fact, I built entire businesses around that assumption. When sales dipped, I chased more sales. When expenses rose, I chased more sales. When cash got tight, I chased more sales. Revenue became the answer to every question.
The problem is that revenue doesn’t fix broken systems. You can hit record-breaking revenue numbers while quietly wondering how you’re going to make payroll. You can generate millions of dollars a year and still feel financially insecure.
Revenue creates activity. Profit creates stability. Those are two very different things.
What Is Profit, Really?
Technically, it’s correct that profit is whatever’s left over after expenses.
It’s also one of the reasons so many businesses struggle.
When profit becomes the leftover, it usually gets left over. Every new expense feels justified. Every software subscription feels necessary. Every hire feels urgent. Every opportunity feels worth pursuing. Before long, revenue rises, but available cash disappears.
That’s why I often define profit differently.
Profit is a reserve. Profit is protection. Profit is breathing room. Profit is what allows your business to survive a difficult quarter, a seasonal slowdown, an economic downturn, or an unexpected crisis. Profit gives you options.
And options are what create freedom.
Economic Volatility Exposes Weak Profit Systems
We’re living through one of those periods right now in which business owners are dealing with uncertainty from every direction. Consumer behavior is shifting. Costs remain elevated. Markets are unpredictable. Entire industries are being disrupted faster than ever before.
You already knew that, right? Did you know that when conditions become volatile, weak systems get exposed? This is when businesses that operate without profit often discover they have no margin for error. One delayed payment, one slow month, one unexpected expense, and suddenly everything feels fragile.
That’s not because the owner fails, It’s because the business lacks stability.
Profit is what creates resilience.
Think about it this way:
A tree survives storms because of its roots, not because of its height. Profit is the root system of your business. Revenue may make your business look impressive from the outside. Profit determines whether it can withstand the storm.
The Profit Level in Fix This Next
In Fix This Next, I explain that every business has a priority pyramid. Just like people need food before self-actualization, businesses need certain foundational elements before they can successfully pursue growth. One of the main foundational needs is profit, because profit supports both the business and the owner. Without profit, everything becomes reactive. Every decision gets driven by urgency. Every challenge feels bigger than it should. Every setback feels personal.
When profit is healthy, the business gains stability. The owner gains confidence. And confidence creates better decisions.
Profit isn’t just a financial metric or cash in your pocket. It’s a support system.
The Emotional Side of Profit Nobody Talks About
I want to acknowledge something important that drives me to create new systems:
Financial stress is exhausting.
It hits your mental and physical wellness, your emotions…when cash flow is tight, it follows you everywhere. The business never truly leaves your mind because the uncertainty never leaves your mind.
I’ve lived this. Many entrepreneurs have. The irony is that from the outside, nobody sees it. The business may appear successful while the owner quietly carries enormous stress. This is why profit matters so much.
Not because profit makes you wealthy.
Because profit makes you stable.
Where to Start – Five Questions to Strengthen Profit in Your Business
Improving profitability doesn’t require a complete business overhaul. It starts with a few intentional changes. The first step is to ask yourself…
- Debt eradication: Do you consistently remove debt rather than accumulate it?
- Margin health: Do you have healthy profit margins within each of your offerings? Do you constantly seeky ways to improve upon them?
- Transaction frequency: Do your clients repeatedly buy from you over your competition?
- Profitable leverage: When debt is used, is it used to generate predictable, increased profitability?
- Cash reserves: Does the business have enough cash reserves to cover all expenses for three months or longer?
Remember – Profit Is an Act of Service
This may sound strange coming from a guy who wrote Profit First, but profit isn’t really about money.
It’s about service. When your company is profitable, it allows you to serve customers longer, create more opportunities for employees, and contribute more to your community.
A profitable business allows you to show up with confidence instead of fear.
Profit allows your mission to continue.
Without it, even the most well-intentioned business eventually struggles.
Final Thought
Profit is stability.
And stability may be one of the greatest gifts you can give your business and yourself.
You’ve got this!
-Mike
PS – By now I hope you’re convinced that profit isn’t a greedy luxury, but a necessity for peace of mind and a successful business. Grab a copy of Fix This Next or Profit First at your favorite bookseller.
PSS – Not sure if profit is an issue for your business? Take the quick, free Fix This Next Evaluation HERE.
