211 | A 7-Figure Business Doesn’t Mean You’re Making Money
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211 | A 7-Figure Business Doesn’t Mean You’re Making Money
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Why can a business be profitable on paper and still leave you wondering, “Where is all the money?”
In this episode, Erin breaks down one of the most misunderstood parts of running a business: the difference between revenue, profit, profitability, and cash.
More revenue doesn't automatically mean more money in the bank.
In this episode, Erin discusses:
· The difference between revenue, profit, profitability, and cash
· Why a seven-figure business doesn't necessarily mean a financially healthy business
· How receivables and payables impact the cash you have available
· Why growing revenue won't fix an inefficient or expensive business
· The difference between money actually being tight and money feeling tight
· How moving the financial goalpost can keep you from ever feeling financially safe
· The nervous system's relationship with money and financial safety
· Why every person you hire doesn't need to directly generate revenue
· Looking at ROI through mental space, creativity, emotional relief, and freedom, not just dollars
· Asking whether your business is actually creating the life and freedom you want
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