Great Clients, Revenue, and Growth but No Profit – A Bookkeeper’s Tale

Derek didn’t plan for profit, he hoped for it though. He ran a digital marketing agency with a lean team and a stacked client roster. Every month, recurring revenue came in. Every month, it went right back out: Software, subcontractors, payroll, rent, and ad spend. Whatever was left at the end, if anything, went to him.

He’d tell himself, “It’s fine, I’m reinvesting.” But reinvesting turned into barely scraping by. 3 years later, he was repeating the same thing to himself.

Even after breaking six figures, Derek felt broke. He couldn’t take a vacation. He couldn’t breathe between launches. And the worst part? He couldn’t see what he was doing wrong. The money was flowing, it just never grew.

When we sat down, I showed him that society teaches you Income - Expenses = Profit. It is no wonder that he continued to struggle. Budgeting like this leave profit as leftovers. Instead, if he used my EPI™ formula: Expenses + Profit = Income, he would start making his profit INTENTIONAL.

Instead of treating profit like a lucky surprise, we made it an intentional part of his sales goals. We mapped his actual business costs, built in the income he wanted, and reverse-engineered how many clients he really needed. Three months later, Derek was making the same revenue, but finally seeing money stack in his profit account. He was no longer hoping for profit, he knew it was part of every sales goal he set.

If you’re only looking at profit after the bills are paid, you’re already behind. Plan for profit by building it into your sales goals. 

Lub you,
Crystal 🦄