Most founders accept the textbook version of profit: revenue minus cost. But in high-growth businesses, that formula oversimplifies what determines bottom-line success.

In this episode, we delve into a more strategic equation, one that reveals how profit is built into your business model, rather than being squeezed out of spreadsheets.

1. The Right Clients.

Serving the wrong market, even if it’s large, often leads to low-margin, high-friction engagements. The best clients value your solution, respect your process, and align with your pricing power.

2. The Right Pricing.

Pricing isn’t just math. It’s positioning. Founders who undercharge to “stay competitive” often compromise the health of their business. Price must reflect value, not fear.

3. The Right Delivery Model.

If your operations aren’t designed to scale profitably, growth becomes a liability. A delivery model that’s repeatable, efficient, and team-enabled ensures the margin doesn’t disappear as volume increases.

Too many entrepreneurs chase revenue and assume that profit will follow. But in reality, sustainable profit must be engineered from the start.

Final Insight:

Profit isn’t an afterthought; it’s a design choice. You don’t get a margin by chance. You get it by aligning your model with the outcomes your business needs to sustain freedom, stability, and scale. Listen in to rethink your formula.

Highlights:

00:00 Introduction to the Profit Formula

00:06 The Real Profit Formula

00:18 Designing for Profit

00:30 Reworking Your Profit Model

Links:

Website: https://www.marcogrueter.com/

LinkedIn: https://www.linkedin.com/in/marcogrueter/