We’ll do over $100 million in revenue this year, but that’s not the number that matters. Two numbers actually tell you the truth: gross profit and net profit. Gross profit tells you if you’re running efficiently, or if low overhead is just covering up a weak conversion rate and average ticket. Net profit tells you what the business actually produces after everything. Revenue is the headline. Those two numbers are the real report card.
@officialchadpetermanTranscript
We'll do over $100 million in revenue this year, and that's not the number that matters. Here's the two that do. Gross profit and net profit. What are you doing at those lines? How efficient is your business from a gross profit line? Are you operating efficiently? Or is your lack of overhead and SG&A that you don't have to have covering up for your lack of efficiency? That's looked at in conversion rate, average ticket, so on and so forth. Then we look at net profit. How much profit is the business actually producing? Revenue for vanity, profit for sanity.
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