Profit Explained

Profit is what’s left after you subtract all expenses from your revenue. It shows how much money your business actually keeps. This guide breaks down what profit is and why it matters.
profit

Profit is the financial gain achieved when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the business. It’s a key indicator of a business’s financial health and is crucial for growth, reinvestment, and sustainability. Understanding profit helps entrepreneurs and side hustlers make informed decisions about pricing, cost management, and investment opportunities.

Consider a freelance graphic designer who charges clients $1,000 per project. After deducting expenses such as software subscriptions, marketing costs, and taxes totaling $400, the remaining $600 is profit. By consistently managing expenses and pricing projects effectively, the freelancer ensures a steady profit stream, enabling reinvestment in tools and professional development.

  • Monitor and control expenses regularly
  • Price products or services to ensure healthy margins
  • Reinvest earnings into business growth opportunities
  • Utilize high quality payment processors to keep more money
  • FreshBooks – Accounting software for freelancers and small businesses
  • Wave – Free accounting and invoicing software

Amazon, a global e-commerce giant, consistently manages make money despite its massive scale and diverse operations. The company focuses on cost control, strategic pricing, and continuous reinvestment into new ventures and technology. In 2020, Amazon reported a net income of $21.3 billion, highlighting its effective profit management strategies. This financial strength allows Amazon to expand its services and maintain its competitive edge.

  • Leverage Scale: Use your business size to negotiate better terms and prices.
  • Cost Control: Continuously monitor and manage expenses to maximize earnings.
  • Strategic Reinvestment: Reinvest earnings into new growth opportunities and technologies.

Take your business to the next level. Schedule a free small business consultation to get personalized information and strategies to making your business more money.

Want personal advice?

Get a free consultation from Hustler’s Library! Fill out the quick survey, and a Hustler’s Library Small Business Specialist will contact you shortly!

Trusted by 1,000+ entrepreneurs.

Keep Learning

business events in 2025

Can’t-Miss Business Events in 2025

If you’re serious about growth in 2025, showing up in the right rooms matters. The top conferences this...

The Best Grants for Veteran Business Owners: Saluting Success

Starting a business after military service comes with unique strengths—and unique support. These top grants offer funding, mentorship,...
About Ryan Serhant

Everything About Ryan Serhant

From cold calls to million-dollar listings, Ryan Serhant scaled with strategy and serious drive. He built a brand...
Recommended Books by Tim Cook

Recommended Books by Tim Cook

Tim Cook reads to better understand people, progress, and purpose. His book list reflects a calm kind of...
Books recommended by Dame Dash

Books recommended by Dame Dash

Dame Dash reads to build power, protect culture, and stay independent. His favorite books cover strategy, mindset, and...
Recommended books by Joe Rogan

Recommended books by Joe Rogan

For Rogan, books are tools for thinking deeply, training harder, and understanding the world more clearly. His reading...