Turnover for Vanity, Profit for Sanity: Why Small Businesses Must Focus on Profit

By Jo Simpson

As a profit strategist, my focus isn’t on the flashy top-line revenue numbers. Instead, I hone in on what really matters: net profit, the money you can take out of your business and put in pocket.

You’ve probably heard the saying, “Turnover is vanity, profit is sanity.” And it couldn’t be more true. Revenue might look impressive, but it’s your profit that determines the financial health of your business and, ultimately, your ability to pay yourself.

So, let’s tackle a common myth: “You shouldn’t make a profit in your first year of business.”

This idea couldn’t be further from the truth. For small businesses especially, profit is crucial. Unlike large corporations with significant turnovers, small businesses often operate with leaner margins. That’s why retaining as much profit as possible is essential. It’s not just about covering expenses; it’s about building a sustainable business that supports your goals and gives you the freedom you started your business to achieve.

Profit isn’t just a number on a balance sheet,  it’s what fuels growth, enables reinvestment, and, most importantly, allows you to get paid. As a small business owner, every pound of profit counts. It’s the difference between working tirelessly for your business and building a business that works for you.

Here’s why focusing on profit matters:

1. Stability: A profitable business can weather unexpected challenges, invest in new opportunities, and remain resilient during tough times.
2. Sustainability: Profit ensures you’re not just working to survive but thriving as a business owner.
3. Freedom: When your business generates profit, you can pay yourself, save for the future, and do amazing things with your money. 

If you’re ready to take control of your numbers and make profit your priority, I’d love to help you.

Join our free Power Hour! These weekly sessions are designed to help you gain clarity, understand how to maximise your bottom line, and create a plan to pay yourself what you deserve.

Your business should be a source of joy and freedom, not stress and overwhelm. Let’s focus on profit because that’s where the magic happens.

You can join our next free session here and take the first step toward a more profitable, sustainable business.