Originally Posted by themadcutter
"Just because you gross 500,000 a year doesn't mean your making money."
thats a salient. Revenue is not the same as profit. No matter how high a business's revenue is the owners income could be very small or be coming from debt. Its a system that won't last forever without. most people do not understand this basic function of math, even when they say they understand it they usually won't fully comprehend.
I've explained this to people I know. A million dollar a year business with no profit. they understand and then in the next breath say " but they must be making something. they have a million in sales"
Revenue is only profit when there is more revenue than cost. wether the business has $5 in sales or 5 billion. its all relative.
Though with 5 billion in sales its a lot easier to pretend there is profit.
Why do have to read this exact type of post once a week. Come on folks!
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