Your Revenue Is Growing. So Why Are You Making Less Money?

If your margins are trash, your business isn't growing, it's inflating. There's a lot of people that are proud of revenue, but you necessarily shouldn't be because revenue without margin is just busy work with no scorecard.

People get caught up in the vanity metrics of revenue, but if you have a $10 million company and you have no profit, you might as well have a $600,000 company with 20% profit. Your margin needs to stay consistent as you grow, and so you always want to keep an eye on that. Now, that doesn't mean that you're not going to have some years that you are investing more into your company, and those years it's fine to really focus on driving up that revenue as long as your intention and your plans and your budget show you that you are going to have that return on your investment in that following 6 months or a year.