Revenue looks impressive but margin is what matters. A $500k business making $250k profit beats a million-dollar operation that barely breaks even. Know your gross and net margins to a tenth of a percent.
A million-dollar business that makes no money is just an expensive hobby. Now I want you to think about this. Really good operators know their margins down to one decimal point. If you ask them what's their gross margin, what's their net margin, they know it down to one decimal point. That's the important part of running a very successful business. When you get to look at your financials, when you look at all the different pieces of your business, if you don't know your margins, gross and net, down to that one decimal place, you don't really have a business. You have a hope and a prayer. Many people, I get to meet are all about revenue. The bigger, the better. I'm like, no, I would rather have a $500,000 business making me $250,000 a year than a million-dollar business creating so much stress in my life that it just becomes an expensive hobby. So I'm going to challenge you today. Go look at your financials. While you watch this video, go. I can tell you my gross margin and net to one decimal point. You need to go look at your financials and get on top of things immediately because that's what a great business owner does.
