Hey entrepreneur, are you obsessing over revenue or profit? You may be setting yourself up to struggle...
Most businesses look successful from the outside... but the real scorecard is simple. If net profit isn’t hitting roughly 20 percent, the business isn’t healthy regardless of what your revenue is. Margins can shift by industry, but for most businesses, a 20 percent baseline is the starting point. When it’s lower, something inside the business needs a fix, whether it’s expenses, head count, or the way work is being done. Revenue feels exciting... but it never creates wealth by itself.
Profit is the most black and white indicator that tells you whether the business is strong or stressed. Dial back the obsession with top line numbers and focus on tightening margins so the money you make is money you keep.
Share this with someone who measures success the wrong way.