What is Profit?

Profit is revenue minus every expense: materials, rent, salaries, taxes, the works. It's the 'bottom line,' and it's the entire point. Profit is the money the business actually made.

'Gross profit' subtracts only the direct cost of what you sold. 'Net profit' subtracts everything. When someone says 'we're profitable,' always ask which one they mean.

You can survive without revenue growth. You cannot survive without eventually turning a profit — unless you're a venture-funded startup, in which case see you at the next funding round.