Do You Actually Know How Much Profit You Make? (Most Business Owners Don't)

The Uncomfortable Truth

Let me tell you something most people won't say:

Most business owners don't know how much profit they actually make.

Nobody talks about it because it's embarrassing. You're supposed to know your numbers. But the truth?

Sales happen every day. Customers come. Money moves. But the actual profit? Nobody can point to it clearly.

The Problem

When you don't know your profit:

You spend money you don't have
You price products wrong
You can't tell if you're growing or shrinking
You don't know which products make money
You can't plan for the future

If you don't know your profit, your business is gambling.

The Simple Math Most People Avoid

For every sale, there are two numbers:

1. Cost Price: What you paid for the item (or spent to create it)

2. Selling Price: What the customer paid you

Profit = Selling Price - Cost Price

Sounds simple. But most business owners never calculate it.

Example: Selling a Product

You buy an item for ₦3,000

You sell it for ₦5,000

Profit = ₦2,000 (40% margin)

But wait—did you include:

Transport to get the item? (+₦200)
Packaging? (+₦100)
Data to message the customer? (+₦50)
Delivery? (+₦300)

Real cost = ₦3,650

Real profit = ₦1,350 (27% margin)

The "profit" you thought you made isn't what you actually made.

The One-Month Challenge

Starting today, do this:

Step 1: Get a Notebook

Dedicate one notebook to profit tracking. Nothing else.

Step 2: Record Every Sale

For each sale, write:

What you sold
Selling price
Cost price (including ALL costs)
Profit (the difference)

Date	Item	Sold For	Total Cost	Profit
10/1	Widget	₦5,000	₦3,650	₦1,350
10/1	Gadget	₦8,000	₦5,200	₦2,800

Step 3: Calculate Weekly

Every week, add up:

Total sales
Total costs
Total profit

Step 4: Review Monthly

At month end:

Total profit for the month
Best-selling products
Most profitable products (not always the same!)
Products that barely make money

What You'll Discover

After one month of tracking, you'll likely find:

Some products make money, some don't

That item you thought was profitable? After all costs, maybe only ₦200 profit.

Small costs add up

₦100 here, ₦200 there. Over 100 sales, that's ₦10,000-₦20,000 in costs you weren't counting.

Your real margin is lower than you thought

Most businesses discover their actual profit margin is 10-20% lower than they assumed.

Some customers cost more to serve

Customers who need delivery, returns, or extra support might not be profitable at all.

The Profit Visibility System

Once you know your numbers, you can make real decisions:

If You Discover...	You Can...
Product A has 5% margin	Raise price or stop selling it
Product B has 40% margin	Focus on selling more of it
Delivery costs eat 15%	Charge for delivery or require minimums
Total profit is ₦50k/month	Know exactly what you can spend

Common Excuses (And Why They Don't Work)

"I don't have time"

It takes 30 seconds per sale. If you don't have 30 seconds, you're too busy to know if you're making money.

"I'll do it later"

Later never comes. And by then, money has already leaked.

"I know roughly"

Roughly isn't good enough. Rough estimates are usually wrong by 20-40%.

"My business is too small"

Small businesses need profit tracking MORE because there's less margin for error.

The Calculator Mindset

From today, become a calculator:

Every sale = calculate the profit
Every expense = know where it goes
Every week = know your position
Every month = know your trajectory

If you're not calculating, you're not knowing. If you're not knowing, you're gambling.

Start Right Now

1. Get a notebook (or open a spreadsheet)

2. Write your next sale with cost and profit

3. Continue for one month

4. Review what you learned

The business owner who knows their profit makes better decisions, grows faster, and sleeps better.

Which business owner do you want to be?

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*Stop guessing, start knowing. Our Accounting Dashboard calculates your profit automatically—every transaction tracked, every number visible.*