have left over that goes into your pocket or is reinvested in your business. Revenue and profits are very different things, and profits will have a way bigger impact on you and your business! Before I go into more detail, let’s have a quick lesson. Most small biz owners I know are not number oriented, so here I present: Small Biz accounting for math dum- dums! Revenue Revenue is the amount of cash that comes into a business. This can also be known as SALES. Your revenue is the amount of money you have to work with to pay all your expenses, pay yourself, and re-invest in your biz. This is the amount you sell a product for, or the amount you charge for your services. Expenses Expenses are the money you spend to keep your business running smoothly. We generally break this down into 3 cat- egories: Direct Cost of materials: The amount of money you spend to deliver a product. For example, in a restaurant this is food, in a retail store this is the amount you paid for the

By Denise Alison Y ou know what drives me NUTS!? All the ads and promotions I see along the lines of “How to make 6-figures” “How to double your sales” “How to have your first $20,000 month.” Of course, the reason they do that is so that we take notice. But business is a slow process, and you make sales and gain clients one at a time. If you’re a small business owner, you are into relationship building, and that can’t be done overnight. Once you are on a roll with landing clients and making sales, then the number you should be focusing on ISN’T revenues or sales – it’s PROFITS! Profit is the amount of money you



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