Revenue gets the spotlight. But profit is what keeps the lights on.

Let’s get one thing straight:
Revenue is about the money you make. Profit is about the money you keep.

If you’re not keeping enough of what you earn, your business isn’t sustainable—no matter how good the top-line numbers look.

In Part 1, I broke down how revenue is a performance metric for your marketing and sales. But now it’s time to talk about the other side of the equation: what happens after the sale.

Because here’s the deal—if your business is bleeding cash, that’s not a sales problem. It’s an operations problem.
Or a pricing problem.
Or a delivery problem.
Or… maybe all three.

Let’s unpack it.

The Profit Equation

Here’s how earnings really trail down in a business:

Revenue
− Cost to deliver
= Gross Profit
− Overhead & interest
= Net Profit Before Taxes
− Taxes
= Net Profit After Taxes

A lot of people get hung up on that last number. But if you want a better picture of how your business is really performing, pay attention to EBITDA—earnings before interest, taxes, depreciation, and amortization.

Why?
Because taxes can be managed. Debt can be structured.
EBITDA tells you how well your business performs without the influence of financing or tax strategy.
That’s the number banks and investors look at—because it reflects your core operations.

But regardless of which number you focus on, the question remains:

If your profit sucks, where’s the leak?

Let’s start with the most common culprit, and the one you actually have the most control over.

Step 1: Fix Your Operations

Start here. Always.
If your profit margins are thin (or non-existent), your first job is to clean house.

Ask yourself:

• What’s bloated?
  

• What’s not pulling its weight?
  

• Where are you spending money, time, or energy that isn’t returning value?
  

Think of it like this:

McDonald’s didn’t scale because they offered a hundred menu items.
They scaled because they stripped the menu down to just what sold: burgers, fries, shakes, drinks.

Then they built the speedy system that made it scalable.

Consider doing the same.
Simplify → Systematize → Optimize.

Now, if you were running a traditional business with a full staff, this might mean layoffs or restructuring roles. That’s tough. Fortunately, as solopreneurs, we don’t carry that burden. We get to be lean from the jump.

Still building your business as a solo founder? 

I broke down 7 ways to scale without employees [in this article] — worth checking out if you're stuck on this piece.

Step 2: Increase Customer Value

Once your Ops are lean, the next step is to look at how much each client is actually worth.

Are you charging enough based on:

• The value you deliver?
  

• The market you serve?
  

• The resources required to do the work right?
  

If not, you’ve got room to grow.

There are 3 ways to increase lifetime customer value (or average project value, if you’re not on retainer):

1. Keep them longer
   It’s way easier (and cheaper) to retain a client than find a new one.
   

2. Charge more
   Swim upmarket. Premium clients pay premium prices (and expect premium service).
   

3. Solve more problems
   Offer complementary services, upgrades, or add-ons that make life easier for your clients and increase your revenue per sale. Just be weary of overcomplicating your business trying to solve too many problems.  

This isn’t about squeezing more from your clients—it’s about serving them better while increasing your ROI.

Step 3: Add New Income Streams (Carefully)

This step comes last for a reason.

You don’t add new streams until:

• Your current service is dialed in
  

• Your clients are happy
  

• Your delivery and ops are smooth
  

Only then does it make sense to branch out.

One easy win? Affiliate marketing.

If you’re already recommending tools, software, or products to your clients—monetize that.

Use affiliate links that benefit both you and your client.

Example: I recommend Beehiiv to a lot of people building newsletters. This is the same platform I manage BWJ. Through my affiliate link, they get:

• An extended 30-day trial
  

• 20% off for 3 months
  

And I get:

• 50% commission on their subscription for 12 months
  

That’s profit—without lifting a finger or raising prices.
And it doesn’t cost the client a dime.

But when it comes to adding new services, be cautious.
Only do it if it truly complements what you’re already doing.

Back in my event lighting company days, we added pipe & drape to our offerings. It worked great! Enhanced our lighting setups and could also be sold separately.

But then I tried adding small sound systems for ceremonies… and it was a mess.

Wrong fit. Wrong offer. Zero synergy.
All it did was add stress.

Stick to what supports your core business.

Final Thoughts

Profit is not some mysterious financial magic trick.
It’s about the systems you run, the value you deliver, and the clarity you bring to how your business operates.

Remember:

• Revenue is how much you make
  

• Profit is how much you keep

And if you’re not keeping enough, the fix is usually found in one of three places:

• Delivery
  

• Operations
  

• Pricing

Clean those up before chasing new ideas.

If this helped you reframe how you think about profit, I share deeper strategies like this every week in my newsletter.

No fluff. No pitch fests. Just real-world insights for building a business you love.