In accounting 101 we learn that profit is the financial benefit that is realized when the amount of revenue gained from a business activity exceeds the cost associated. While textbooks are fun for accountants, let me share my understanding of profit. A super-mentor of mine shared this with me a few years back, and it has radically shaped my view on business:
“Profit comes from risk.”
That’s it…..now let it sink in.
The day you decided to open your business you took a risk. Decisions to hire, expand, fire, vendor commitments, all involve business risk. The bigger the risk, the bigger the potential reward; profit.
Profit is the result of the risk we take. If the reward is great, as it should be, rejoyce, you deserve it.