I’ve met many business owners who had a major “blind spot” in their Profit First implementation. If you are bringing in millions of dollars in total revenue, it can be very easy to think that you have those millions at your disposal to spend. Make sure you get clear on your True Revenue before you set up your intentional spending plan!
As online business owners, it’s essential to know how to handle unique expenses like launches, live retreats, Facebook ads, contractor fees, Stripe fees, etc. and how these expenses play into your revenue goal. Many of us start out thinking that everything we pay out is a business expense, but there’s more to it than that.
In this week’s episode of Profit for Joy TV, I’m going into detail about the difference between Total Revenue and True Revenue.
- What defines Total Revenue and True Revenue
- The difference between regular business expenses and material costs
- Where in the Profit First system to subtract material costs
Action Item: Have you held a retreat or live event? Tell us how you handled the revenue and what you learned! Sharing helps other entrepreneurs gain valuable insight and build our community knowledge!
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