Revenue is for Vanity, Profit is for Sanity

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Revenue is for Vanity, Profit is for Sanity

While at a sales retreat a week ago, my associate Shanti Hill made an interesting comment that she uses when consulting with her clients.

Revenue is for vanity, Profit is for Sanity

Revenue is for vanity profit is for sanityIt’s all money RIGHT!?!

It’s not. I’m not a financial professional or accountant…I like simple explanations…

  • Revenue is the money coming in from the sales of your products and services. As a stand alone indicator in your business, it is not necessarily an indication of a healthy business.
  • Profit is the money you have left over after you take out all of your business expenses. This is on track to a healthy business with a strong foundation. (With my clients, I take it a step further to see if you are strong foundation in balance with your family and outside commitments.)

You could have high revenues, but if you have high business expenses resulting in low profits, your sanity is not going to be doing very well.

If you have high revenues and you are managing your expenses, your sanity is going to be in more balance.

Take it a step further and I have seen the saying…

Revenue is for Vanity, Profit is for Sanity, Cash is Reality

Generating cash demonstrates performance. Cash reserves, access to credit and access to equity are essential to building a healthy business and again saving your sanity.

So would you rather high revenue or high profits?

I personally value sanity with cash in the bank…lets go create and RevUp your profits together!

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NOTE: If you need tax coaching or financial advice, you can contact Shanti Hill at Shanti Hill Tax Coaching


About the Author:

Yvonne Bryant is CEO and owner of consulting firms (2014) Yvonne Bryant International llc and (2012) Motus Design Group llc. She started her first business, database development and data entry services for international non-profits, over 20 years ago. As CEO of Yvonne Bryant International llc, Yvonne is on a mission to help creative entrepreneurs and experts build and grow profitable businesses. She works with them to improve productivity (your backend systems, processes, marketing, time management, work/life balance), products (your products and services), profits (your pricing strategies and overall business plan), and presence (your leadership and communication skills). She is the 2011-2012 District 26 Toastmaster of the Year for Leadership Excellence and Service for Colorado, Wyoming and Western Nebraska. She has established two Leadership Institutes in Western Colorado. Yvonne is a Certified Small Business Consultant with the Colorado Small Business Development Center Network and she holds a certificate in E-Business. She is in the process of completing her Executive Coaching Certificate with the Center for Executive Coaching. In her free time, Yvonne volunteers in her community as Vice-Chair on the Dillon Planning & Zoning Commission. She enjoys spending time with her husband Evan and their yellow lab Cheyenne hiking in the Mountains of Colorado and riding dirt bikes.

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