Profitability – Golden Nugget #277

If you own a business, then one of your goals should be to make a profit! Even if you don’t own a business, one of your goals should be to make more money than you spend. We’ve all been taught that “a penny saved is a penny earned”, and this is good to thing to keep in mind, but the key to profitability is not keeping your expenses under control. The key to profitability is revenue! I agree that you need to keep your expenses down, but it’s more important to bring in revenue than it is to keep your expenses down, because your profit can never exceed your revenue. Even if you have no expenses, the most you can ever make is 100% of your “Revenue”. So one more time, it’s more important to bring in revenue than it is to keep your expenses down, because your profit can never exceed your revenue. Don’t make the mistake of concentrating so much on expenses that you forget about revenue.
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