In business, is profit really what you think it is?
What is profit really?
As a small business owner, you probably spend a lot of time thinking about profit. You might be stressing out about the fact that you aren’t making as much as you hoped you would. You might be worried about how quickly your expenses seem to be creeping up. You might spend more time than you’d like looking over the figures.
And, given that I’m your friendly neighbourhood accountant, you’re no doubt expecting me to hit you with some sort of foolproof formula about income minus expenditure.
But not today!
Today, I’m going to encourage you to look at profit a bit differently…
Profits vs. benefits?
Originally, the word ‘profit’ comes from the French word for ‘benefit’; it has very little to do with money or earnings.
And I think that’s a lovely way of looking at it.
Because, whatever your profit margins look like, I’m willing to bet your business is providing you — and those in your orbit — with a whole load of easily-overlooked benefits.
Like flexibility…
Maybe your business offers you the flexibility you need to do the school run with your kids, help them with their homework, or have fun with them during the school holidays. Maybe creating your own schedule is giving you more time to spend with friends, to take up new hobbies, or pursue long-neglected interests.
Or your working environment…
Maybe you spent years in a stuffy corporate environment dreaming of working in a more creative, more fluid, more relaxed way, and your business allows you to do just that.
Or even changing the world…
And maybe your business is your vehicle for changing the world. Whether you’re creating an eco-friendly business, determined to level the playing field for marginalised people, or your products or services are playing a vital role in your community, your business could be helping you make a difference in the world.
In fact, any one of these reasons might be the reason you started your company in the first place but, when you get bogged down in the day-to-day stuff, it’s easy to overlook them because they’re not so easy to measure.
Yes, profit in the traditional sense is important — your business can’t operate without it. But if you’re looking around at other business owners and feeling bad that you’re not making as much money as them, it’s worth considering the other benefits you’re getting from your business, like enjoying your work/life balance a lot more, or doing work that leaves you feeling happy and fulfilled.
So, other than profit, what are your biggest business benefits? Drop me a comment to let me know!
