277: Building a business with high profit, not just revenue

In this episode, Tina Tower dives into the vital difference between revenue and profit in the world of online business. She emphasizes the importance of focusing on profit to ensure the sustainability and longevity of a business rather than being solely impressed by high revenue figures. Tina shares her favorite saying: "Revenue is for vanity, profit is for sanity, and cash flow is reality," highlighting her belief that cash flow is crucial for a business's health.

Key Takeaways:

1. Importance of Profit:
   - Profit creates sustainability and freedom in a business.
   - High revenue with low profit can lead to burnout and resentment.

2. Common Profit Killers:
   - Hiring too soon or having bloated expenses.
   - Spending on marketing without seeing a return on investment (ROI).
   - Underpricing or overpricing offers.

3. Strategies for Profit:
   - Set a profit goal before setting a revenue goal.
   - Implement a profit-first accounting strategy.
   - Create high profit offers and monitor your margins.

4. Mindset and Psychology:
   - Bigger isn't always better.
   - Having a financial buffer provides a psychological advantage and allows for better decision-making.

Tina also encourages listeners to focus on creating a business that aligns with their personal goals and provides the life they want, reminding them not to judge their success by others' standards.

Where to find Tina Tower:

Her Empire Builder: https://www.herempirebuilder.com/

Instagram: https://www.instagram.com/tina_tower/

YouTube: https://www.youtube.com/@herempirebuilder

Resources mentioned:

Monday.com https://try.monday.com/tinatower88

Profit First book https://www.amazon.com/Profit-First-Transform-Cash-Eating-Money-Making-ebook/dp/B01HCGYTH4

AI For Course Creators theaicircle.com