The P word. Many startup founders fear this and in fact many of us avoid looking in depth at whether our businesses ACTUALLY make money. Forget that our coveted Monthly Recurring Revenue is high. what about money in the bank?
Today Dave and Craig took a good, hard look at not just profitability in general but our own businesses to see what real profitability looks like. The definition we’re using for whether a business is actually profitable is not just Revenue – Expenses but rather:
“Revenue – Expenses – Founder Salary = Profitability”
Far too often we neglect to pay ourselves first, and that is something that should become commonplace in business practices. Neglecting our own financial wellbeing is a surefire way to burn out and quit the game of entrepreneurship too early.
So, is your business profitable? How are you monitoring and managing profitability in your business?
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