Profit vs. Revenue: The Mistake That Nearly Cost Me My Side Hustle
Profit vs. Revenue: The Mistake That Nearly Cost Me My Side Hustle For the first several months of running a side business, I genuinely believed I was doing well because money was coming in. Clients were paying me, a few digital products were selling, and my bank balance was going up most weeks. It wasn't until I actually sat down and separated what came in from what I spent that I realized how misleading that feeling had been. This is one of the most common — and most expensive — mistakes new entrepreneurs make, so I want to walk through exactly what tripped me up. Revenue Is Not the Same Thing as Profit This sounds obvious written out plainly, but it's surprisingly easy to lose sight of when you're busy actually running a business. Revenue is everything that comes in — every invoice paid, every product sold, every dollar that lands in your account. Profit is what's left after you subtract everything it cost you to generate that revenue: software subscriptions, ad...