How Do I Know If I Have a Sales Problem or a Profit Problem?

March 17
8 mins

Episode Description

Hunter (from Episode 36) came back: "You said I didn't have a sales problem, I had a profit issue. How can I tell the difference?"

In this episode, Scott breaks down the two-question diagnostic: (1) Do I have any sales? (2) Do I have enough sales to support profit? If yes to both, you have a profit problem. You'll learn why revenue is a vanity number, the real math on $500K at 20% vs. $1M at 10%, and why knowing your "freedom number" stops the endless sales chase.

The bottom line: Two questions. Do I have sales? Do I have enough to support profit? If yes to both, stop chasing sales—maximize profit first.

Got a business question? Ask Scott here: scotttodd.net/ask

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