Revenue is Vanity, Profit is Sanity: A Business Lesson I Learned The Hard Way

Each month, I take some time to go over my profit and loss statement and review how much revenue my business has generated. It’s a habit I strongly encourage all business owners to adopt—at least once a month!

Why is this important? Think of your revenue as the lifeblood of your business. It provides a snapshot of how your business is progressing.

How many sales are you making?

How many new clients have come on board?

And most importantly—are you actually making a profit?

In the early stages of my business, I was laser-focused on revenue. Watching that number rise month after month was sexy AF! It gave me a sense of achievement and confidence!

Then one day, something shocking happened...

I opened my profit and loss statement to see that I had just experienced one of my highest revenue months ever. It was time for a celebration! 🎉

But my excitement quickly fizzled out.

Why?

Because right beneath that impressive revenue figure were my expenses. And to my surprise, my costs had completely outweighed my revenue, leaving me with a FINANCIAL LOSS that month. Ouch! WTF?!

That moment taught me one of the most crucial financial lessons I’ve ever learned.

I had been too focused on revenue and not paying enough attention to the real indicator of success: PROFIT.

Yes, revenue is important, but what truly counts is how much of it stays in your pocket.

Remember this: Revenue feeds your ego, but profit feeds your business.

Here’s some good news for doulas: your business has the potential for excellent profit margins! Typically, your expenses are fairly low—often limited to things like software and marketing. But even with that, it’s easy for costs to build up if you’re not tracking them closely.

Continuing education, supplies, transportation costs, meals out, and—let’s be real—coffee expenses can quickly add up. ☕😅

In short, don’t just aim to "boost revenue"—make sure you’re keeping a close eye on PROFIT too. That’s the number that will ensure the long-term health of your business.