Why Focussing on Revenue Won’t Make You Profitable

Too many times I’ve met business owners whose only focus on the numbers is checking their revenue. Whilst revenue is fundamental for all businesses, focusing on this alone doesn’t give enough information to know whether you’re making a profit or not.

Revenue goals are important, don’t get me wrong. There’s nothing more exciting than getting to that first 6 figures revenue figure, or the half a million dollar mark or the million dollar revenue line.

And like all goals, they serve an important purpose for something to aim for and to then celebrate when achieved.

My issue is that revenue of itself isn’t enough. There’s no point having revenue of say $ 100,000 if your costs are $ 120,000.

That’s where another number comes into play. Break even or what I like to call minimum income. It’s also what is needed to fulfil the key element of presence. Without a business that is at least meeting its costs, your presence in business is at risk.

There is only so long that a business will surviv...

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