When I became a coach over 14 years ago, I went through a powerful training program that set the tone for how I serve clients today. One of the very first things I was told in that training stuck with me ever since:
“Most business owners don’t know their numbers.”
Coming from more than 20 years in the financial industry, that hit me hard. I found it hard to believe. After all, we go into business to make money. It made no sense that people running companies would not be fully dialed into their financials.
But then I started coaching, and I learned the truth firsthand.
Many business owners—especially in small to mid-sized businesses—are focused on activity, growth, marketing, and team building. But when it comes to understanding their margins, tracking their profitability, and reading a balance sheet, they are in the dark.
And that is where the real danger begins.
The Illusion of Revenue
Let me be clear. Revenue feels good. It is exciting to see sales climbing. It is fun to tell people you are doing 5 million or 10 million or 20 million in revenue.
But here is the thing.
Revenue is vanity. Profit is sanity.
You can hit huge revenue milestones and still be broke. You can grow your company without ever growing your bottom line. I have seen it too many times to count.
Business owners will walk around proud of their top line, meanwhile they are stressed, cash-strapped, and over-leveraged. They are chasing numbers that do not reflect what actually matters.
The Power of Profit
Let me ask you a question.
Would you rather bring in 20 million in revenue and keep 4 million in profit, or bring in 10 million and still generate 4 million in profit?
Give me the 10. Every time.
Because that means fewer moving parts. Fewer people. Lower overhead. Less risk. And more margin.
That is the difference between looking successful and running a successful business.
Why Business Exists in the First Place
We talk a lot about purpose, culture, service, and leadership—and rightly so. Those things matter.
However, let’s not forget the fundamental reason most people start a business in the first place: to make a profit.
Profit allows you to reinvest in your team.
Profit allows you to innovate.
Profit allows you to pay yourself well.
Profit gives you options.
Profit builds freedom.
Without profit, your business is just stress with a logo.
How to Shift from Vanity to Sanity
If you are operating from the top line only, it is time to go deeper.
Start by getting the right financial systems in place. Here is what I recommend:
- Hire a bookkeeper who knows what they are doing
- Find an accountant who can help you think strategically
- Review your QuickBooks or financial statements monthly
- Understand your expenses and margins
- Set KPIs for your leadership team
- Test and measure regularly
- Track profitability by department or service line
Do not rely on gut feelings. Rely on real data.
For the Business Owners Already Focused on Profit
If you are already looking at your financials every month, reviewing your margins, and making decisions based on profit, you are probably experiencing the difference.
You likely have more peace of mind.
More margin for error.
More ability to lead your company with intention rather than reaction.
That is the power of profit. That is the peace of sanity.
Final Thoughts
You are in business. That means you have a responsibility—to your team, your customers, your family, and yourself—to know your numbers.
You cannot lead what you do not understand.
Revenue might look good on paper. But profit is what gives your business strength. It is what gives you breathing room. It is what gives you staying power.
Revenues are vanity. Profits are sanity.
And sanity is a beautiful place to build from.
Wishing you a productive and profitable week ahead.
COACH MICHAEL DILL is an Award-Winning Certified Business Coach, global speaker, and published author. He is a proud ActionCOACH Franchise Partner as well as the President of Power & Ice Wealth Creation, a strategic leadership company that works with business owners, leaders, teams, and entrepreneurs to build systematized, structured organizations while accelerating mindset, efficiency, and effectiveness to achieve extraordinary results.
BusinessCoachMichaelDill.com