Profit
Ron explains in 60-seconds with no BS
So what is profit, really?
Profit is what’s left after your business covers everything: the bills, the rent, the salaries, the random software subscriptions you forgot you were paying for.
It’s not your revenue. Revenue is how much you bring in. Profit is how much you actually keep. It’s the clearest way to tell if your business model works - or just burns through cash.
There are different types: gross profit (before overhead), operating profit (from your main biz), and net profit (after all the dust settles).
But at the end of the day, they all answer one question: Did you make more than you spent? If not, you’re not running a business… You’re running in circles.
Revenue is the party. Profit is what’s left after everyone goes home and you find cash in the couch.
How people actually use it in a sentence...
“The business looks busy, but Andre hasn’t seen a profit since he discovered Grub Hub delivers ice cream and tacos.”
Did you know...
Amazon didn’t post a full-year profit until 2003 — almost a decade after launching. For years, it made billions in revenue and still lost money.
Want the textbook definition? Check out Profit on Investopedia.com