Focus on profit margins, not revenue from "summary" of Profit First by Mike Michalowicz
When it comes to running a business, many entrepreneurs make the mistake of focusing solely on increasing revenue. They believe that more revenue means more profit. However, this is a common misconception that can lead to financial struggles. The key to financial success lies in understanding the concept of profit margins. Profit margins are a crucial metric that determines how much profit a business makes from each dollar of revenue. By focusing on profit margins, business owners can ensure that they are not just bringing in money, but actually keeping a healthy portion of it as profit. This shift in perspective can have a significant impact on the financial health of a business. When you prioritize profit margins, you are forced to take a closer look at your expenses and pricing strategies. You may discover that certain products or services are not as profitable as others, leading you to make ne...
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