Episode 25: How to Focus on Profit and Stop Chasing Revenue

  📍 Welcome to CreativeMind Smart Money, the podcast where creativity and business smarts collide. I’m your host, Samantha Eck, bookkeeper, business coach, and your go to guide for building the creative business of your dreams. Whether it’s mastering your money, streamlining your systems, or growing your business, I’m here to share insights that empower you to thrive.

Plus, I’ll be bringing in industry experts to dive into all aspects of entrepreneurship, so you can turn your passion into profit without losing your creative spark. Let’s get started.

  You’re listening to the Creative Minds Smart Money Podcast, and I’m your host, Samantha Eck. And today we’re diving into a topic that has tripped up way too many creative interpreters, the difference between profit and revenue. Now, if your eyes are already glazing over because accounting terms, stay with me.

This isn’t some dry lecture. This is real talk. About why you’re making money, but still feel broke or why your big wins Don’t feel so big when you’re looking at your bank account by the end of this episode You’re not only going to understand the difference between profit and revenue But you’ll also know how to use that knowledge to run a healthier more sustainable creative business

Let’s start with the basics because I know these terms get thrown around a lot and they’re not interchangeable Revenue is all the money your business brings in before you do anything else. It’s the big, shiny number that makes you feel like a boss. You booked a 5, 000 project? That’s revenue. You sold 100 prints at 50 each? Revenue. Profit is what’s left over after you’ve paid all the bills. It’s the money you actually get to keep. And it’s probably not as much as you think it is.

You. Can have 100k in revenue and still barely scrape by if your expenses are eating you alive. If you’re sitting there thinking, okay cool, but why does this matter to me, Samantha? Let’s spell it out. First of all, revenue lies to you. Revenue is a flex.

It’s. The number that makes you want to post on Instagram with hashtag booked and busy vibes. But if your expenses are out of control, that revenue is just smoke and mirrors. You can’t pay your rent with booked out. You can only pay it with the profit that’s left over after you cover your costs.

You might be really familiar with revenue because I’m sure you’ve seen tons of coaches lay claims to making six figures or saying I’ve had 10, 000 months or I’m having 15, 000 months.

Is that revenue or is it profit? That is the key.

Profit tells you the real story. It shows you if your business is actually working.

Are your prices too low? Are your expenses too high? Are you wasting money on things that don’t move the needle? When you focus on profit, you focus on what actually matters.

You can’t make smart decisions without this clarity. Let’s say you’re planning next year’s goals. If you only look at revenue, you might think, I need to make more money. But if you look at profit, you might realize I actually need to cut expenses or I need to raise my prices. Do you see the difference?

Okay, let’s make this practical. You don’t need a degree in accounting to figure this out. Here’s how to get your profit. Start with your revenue and add up all the money you made this year. Every invoice, every sale, every client payment. If you’re already doing this in accounting software, you already know.

Subtract your expenses, tools and software, marketing costs, materials and supplies, team costs or contractors, and of course your taxes. Don’t forget that Uncle Sam will always take a slice of your profits.

What is left is your profit. If your profit is looking like it’s just pocket change, it’s time to dig into your expenses and your pricing.

Let’s talk about some mistakes I see creative entrepreneurs make when it comes to profit and revenue. A high revenue number can feel really validating, but it doesn’t mean much if your profit is slim. Stop chasing big revenue numbers and start chasing healthy profit margins. Revenue does not equal success.

Expenses are sneaky little gremlins. Subscriptions you don’t use, supplies you over order, tools you might need someday, they all add up. Review your expenses regularly and cut what you don’t need. If your profit is consistently low, Your prices may be the problem. Are you charging enough to cover your expenses and still pay yourself?

Remember, pricing isn’t just about covering costs. It’s about valuing your work. And if you need a little help about talking about pricing, you know I’ve got your back. There’s some episodes in the backlog that you should definitely check out. The fourth one is not paying yourself. You are not your business’s piggy bank.

Your profit should include a paycheck for you. If you’re not paying yourself, we need to talk about your pricing, your expenses, or both. Now that we kind of know the difference between profit and revenue, let’s talk about how to make sure your profit is where it needs to be.

The first thing you need to do is audit your expenses.

Go through your expense categories line by line and ask yourself, does this expense help make me money? Could I get the same results for less? Do I actually use this? Cancel what’s not serving you and redirect that money to things that will actually help you grow. You want to revisit your pricing.

Are your prices based on what your services or products are FEMA. gov Factor in all your costs, time, materials, software, taxes, and yes, paying yourself. If you need to raise your prices, do it. The right clients will understand your value. Decide how much profit you want to make next year, then work backwards.

How much revenue will you need to hit that profit goal? Use your numbers to guide your strategy. Don’t just think about your revenue goal, think about all of it. Let’s get real for a second. I know numbers aren’t your favorite thing. You’d rather spend time creating, designing, writing, or doing whatever it is that lights you up.

But ignoring your profit and obsessing over revenue isn’t going to get you where you want to go. It matters because profit gives you the freedom to invest in your business. Profit lets you pay yourself what you’re worth. Profit keeps you in control instead of constantly chasing the next project to stay afloat.

You deserve a creative business that thrives, and understanding the difference between profit and revenue is a huge part of making that happen. So don’t fall for all those false revenue claims you see out there saying, I made 10k a month, I made 150k a year. Get behind your numbers and understand the profit.

📍 That’s the scoop on profit versus revenue. Now that you know the difference, it’s time to take a hard look at your numbers. Ask yourself, am I focusing too much on revenue and not enough on profit? Do I need to adjust my pricing, cut expenses, or set clearer goals? This isn’t just about the numbers. It’s about building a business that supports your creativity, your goals, and your life.

And hey, if you’re ready to dig into your numbers, but don’t want to do it alone, I’m always here to help. Together, we can get your business running like the dream machine it’s meant to be. Thanks for hanging out with me today. Until next time, keep creating, keep thriving, and keep your eyes on that profit.

Farewell, fellow travelers.