Once again, @patio11 (+ @delk, @ThomasSmale) are right.
Increasing revenue seems to be the best lever for increasing profit.
Here are different scenarios (based on my 2nd year as a solopreneur).pic.twitter.com/jvVtqAK5Mh
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gross profit is the more interesting one to me as a solopreneur. I vary my salary quite a bit depending on how many tax deductions I have in a given year or how many vacations I plan on taking. So ultimately that net profit doesn't directly correlate to how well my biz is doing.
If selling we use seller discretionary earnings - this discounts founder salary which will vary for solopreneurs. Ironically, as companies grow revenue and profit founder salary doesn't necessarily increase. Have personally made similar for 5 years vs 5x company rev/profit growth
This is definitely something I need to learn about in 2018/now
Currently reading "Profit First" by @MikeMichalowicz and it sounds like sound advice for healthy, sustainable, growth.
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