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I’m stressed by the amount of people that think business revenue, personal income, and/or personal net worth are synonymous.
They’re not.
They’re not.
BUSINESS REVENUE is the amount of money your company generates in sales.Simple example, if you buy 5 of a product for $3/ea and sell them for $5/ea, that’s $25 in revenue.
PROFIT is your revenue minus expenses, in this case your expenses are $15, so your profit is $10.
PERSONAL INCOME is essentially your salary. If you make $100,000 in one year, it does not mean you’re worth as much. Your NET WORTH is the value of your personal assets— this can be property, land, bank accounts, jewelry/precious metals, artwork, etc.
Facts:
• you can sell $100,000 in revenue in one month and still be cash-poor due to high expenses
• you can simultaneously have a $100,000 annual salary and a $0 net worth
• you can have a high net worth without having a salary
• you can sell $100,000 in revenue in one month and still be cash-poor due to high expenses
• you can simultaneously have a $100,000 annual salary and a $0 net worth
• you can have a high net worth without having a salary
