Profit is not what is left over, it is what you plan for - 3 Ways to Build Profit Into Your Process

1. Price Like You Mean It

Most business owners underprice. Not because they want to, but because no one ever taught them how to price for profit.

They charge what others charge. Or what they think the client will pay. Or just enough to cover costs. That is a fast road to burnout and razor-thin margins.

Instead, flip the model. Price with profit first:

• Start with what you need to earn: owner’s pay, taxes, profit cushion.

• Add the true cost of delivery; including your time, labor, materials, tools, overhead.

• Then layer on a healthy margin.

  
  

Example: If it costs you $800 to deliver a service, and you want a 30% margin, your base price should be at least $1,143, not $900 because “that’s what others charge.”

💡 Teaching gem: If your price does not make you a little uncomfortable, it is probably too low.

2. Cut the Hidden Fat

Your profit is leaking somewhere, it always is. You are not just bleeding cash from the obvious stuff like rent or payroll. The real killers are death-by-a-thousand-small-cuts:

• Monthly tools you do not use

• Freelancers that are not producing ROI

• Discounting your rates to “close the deal”

• Subscriptions that autopay forever

How to stop the bleeding:

• Every 30 days, print your expenses. Mark each one: Essential / Negotiable / Kill.

• Ask: “Would I buy this again today, at this price?”

• Look for overlaps; are you paying for 3 tools that do the same thing?

Pro tip: Create a “contractor scorecard.” Every quarter, rate each vendor on value delivered vs. cost.

💡 Teaching gem: Profit is not just earned, it is protected. Cut fast, cut often.

3. Protect Your Margins

Revenue is the ego number. Margin is the survival number. You can make $300K and be broke, or make $100K and be flush with cash. The difference is margin.

Gross margin tells you what is left after the cost to deliver.

Net margin tells you what is left after all expenses.

If your gross margin is under 50%, that is a red flag. If your net margin is under 15%, you are one surprise away from a cash crisis.

What to track:

• Cost of Goods Sold (COGS) for each offer, not just your business overall.

• 
  

• Time spent on delivery (especially if you undercharge flat-fee work)

• Scope creep, clients asking for more than they paid for

Your best move? Raise prices on low-margin services, or cut them entirely.

💡 Teaching gem: You are not in business to move money, you are in business to keep it.

✅ Want to uncover your hidden leaks? Let’s run a Profit Leak Assessment together.

👉 Book a Discovery Call Now : (630) 670-3989

📥 Or forward this to someone who needs a second set of eyes on their finances.