Stop Guessing: Here's How to Know If Your Business Is Really Profitable

For a long time, I thought profit meant "having money left over."

If my account wasn’t in the red and I could pay my bills? I was profitable.

But the truth? That was wishful thinking. Because real profitability isn’t about crossing your fingers and hoping there’s money left at the end of the month.

It’s about knowing—with clarity and consistency.

So let’s stop guessing. Let me show you how I finally figured it out, and how you can too.

Why Most Entrepreneurs Confuse Revenue with Profit

Here’s the trap so many of us fall into:

• We celebrate hitting $5K, $10K, or even $20K months

• But we don’t really know how much of that we kept

• We reinvest in tools, coaches, and ads without knowing our true margins

Revenue feels exciting. Profit feels… elusive.

And it’s not your fault. We’re trained to chase numbers that sound good, not numbers that mean something.

But here’s the thing: revenue is vanity, profit is clarity.

The First Time I Calculated My True Profit (And Got a Wake-Up Call)

I remember sitting at my kitchen table with my laptop, trying to figure out why my business felt tight even after my "biggest month ever."

So I pulled up every transaction. I added up what I brought in, what I spent, and how much was left.

It wasn’t pretty.

That $10K month? I had kept $1,700. Ouch.

That was the moment I realized: I don’t just need to track income. I need to understand my profit.

And so, I created a system for doing exactly that.

4 Questions to Know If You’re Really Profitable

Here are the exact questions I ask myself every single month:

1. What was my total revenue?

That’s all income, before expenses. Every invoice, every sale, every dollar that came in.

2. What were my total expenses?

This includes tools, subscriptions, team, coaching, software, taxes, even coffee shop work sessions.

3. What did I pay myself?

Because if your business makes money but you don’t, that’s not sustainable.

4. What was left over? (aka: real profit)

Revenue - Expenses = Profit. Simple math, powerful truth.

When you start answering these questions monthly, everything changes.

What Profitability Gives You (Besides Peace of Mind)

Knowing your profit means:

• You can make smarter investments

• You know when to cut or double down

• You stop chasing “bigger months” and start building sustainable growth

• You feel in control instead of guessing

And the best part? You start saving more. Because now you actually know what you have.

Want Help Getting There?

I created a free resource to help you get clarity fast: the 5 Days Saving Challenge.

Even though it’s focused on saving, it starts with awareness—because you can’t save what you don’t understand.

Inside, you’ll learn:

• Where your money is going

• How to start tracking real profit

• Simple habits to help you keep more of what you earn

👉 Join the free challenge here and start building profitability, one habit at a time.

Final Thoughts

You don’t need to be afraid of your numbers. You just need to know how to read them.

Profit isn’t mysterious. It’s measurable. And it’s the foundation for everything you want to build.

So let’s stop guessing. Let’s start knowing.

👉 Sign up for the 5 Days Saving Challenge and get clear on your numbers today.