Revenue is vanity, profit is sanity, cash is king.
I have talked about this with thousands of clients so many times but what does it actually mean?
There is often a resistance in people to talking about money and numbers. It is almost a taboo subject and when talking about the details causes much squirming. And yet there is a huge trend in the online space for beautifully coiffed individuals to be shouting about their multiple 6 & 7 figure revenue businesses.
This leaves those in their wake feeling significantly inferior and doing anything they can to boost that revenue for fear they will become one of the 50% of businesses who fail in their first five years (according the Small Business Association). The reality though is that revenue is a vanity number, it gives you no indication of profitability. 6 & 7 figure revenue means absolutely nothing if it took 6 & 7 figure costs to get there. When it comes to cash, given so many sales are taken on payment plans, you can almost guarantee that a 6 figure launch is not 6 figures in the bank in the short term. In fact, if the payment plan is 12 months, a 6 figure launch doesn