Why Growing Sales May Not Mean Higher ProfitsWhy Growing Sales May Not Mean Higher Profits
The network for creativity
Join 1.25M professional creatives like you
Connect with clients, get discovered, and run your business 100% commission-free
Creatives on Contra have earned over $150M and we are just getting started
Episode 2: Your Numbers Should Make a Sense! Your sales are growing, but are you actually making more money?
Sales up 40%. Profit down 7%. 😬
Same business, six months later:
Sales: 100K β†’ 140K a month
Profit: 15K β†’ 14K a month
Profit margin: 15% β†’ 10%
More revenue doesn't mean more money. Three things quietly eat the difference:
1️⃣ Margins shrink. Discounts, supplier price rises and delivery costs. 2️⃣ Overheads outgrow sales. Hires, rent and software. 3️⃣ Cash gets stuck. Unpaid invoices and unsold stock.
Track these 3 numbers every month: βœ… Gross margin % βœ… Net profit margin % βœ… Profit vs cash in the bank
Growth without margin is just a busier business.
Back to feed
The network for creativity
Join 1.25M professional creatives like you
Connect with clients, get discovered, and run your business 100% commission-free
Creatives on Contra have earned over $150M and we are just getting started