98 - The Simple Profit Formula Most Founders Ignore
Profit isn’t just a financial output; it’s a strategic design. Discover the overlooked formula that helps founders intentionally grow their margins, without simply selling more. Align your clients, pricing, and delivery for sustainable profit.
The Simple Profit Formula Most Founders Ignore
Most founders accept the textbook version of profit: revenue minus cost. But in high-growth businesses, that formula oversimplifies what determines bottom-line success.
In this episode, we delve into a more strategic equation, one that reveals how profit is built into your business model, rather than being squeezed out of spreadsheets.
1. The Right Clients.
Serving the wrong market, even if it’s large, often leads to low-margin, high-friction engagements. The best clients value your solution, respect your process, and align with your pricing power.
2. The Right Pricing.
Pricing isn’t just math. It’s positioning. Founders who undercharge to “stay competitive” often compromise the health of their business. Price must reflect value, not fear.
3. The Right Delivery Model.
If your operations aren’t designed to scale profitably, growth becomes a liability. A delivery model that’s repeatable, efficient, and team-enabled ensures the margin doesn’t disappear as volume increases.
Too many entrepreneurs chase revenue and assume that profit will follow. But in reality, sustainable profit must be engineered from the start.
Final Insight:
Profit isn’t an afterthought; it’s a design choice. You don’t get a margin by chance. You get it by aligning your model with the outcomes your business needs to sustain freedom, stability, and scale. Listen in to rethink your formula.
Highlights:
00:00 Introduction to the Profit Formula
00:06 The Real Profit Formula
00:18 Designing for Profit
00:30 Reworking Your Profit Model
Links:
Website: https://www.marcogrueter.com/
LinkedIn: https://www.linkedin.com/in/marcogrueter/
Transcript:
The simple profit formula, most founders ignore revenue minus cost equals profit. That's what the books say, but that's not how profit really works in your business. Here's the formula. Most founders over your profit means the right clients, the right pricing, and the right delivery model. If you don't design for profit. It won't happen. I see too many business owners leaving money on the table because they're chasing revenue, not building profit by design. Want to rework your profit model? Grab the profit leak finder and see where you can gain margin without selling more.