Daily Focus – Day 275: Separate Revenue From Profit
Part of Daily Focus: 365 Practical Notes for Solo and Small Business Owners.
Sales totals can look healthy while costs and labor tell a different story.
Start with the selling price, then subtract transaction fees, direct materials, affiliate payments and delivery costs. Add labor separately if needed; a product can generate cash while compensating the business poorly for the work attached to each sale.
Try this today: Calculate what remains from one offer after direct expenses and fees.
Keep in mind: Revenue describes movement; profit describes what the business keeps.
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