In this episode, we’re talking about a financial metric that’s far more important than your turnover—profit margins.
I’m Deb, a Profit First Professional, and I want to reframe your thinking: it’s not how much you earn, it’s how much you keep that counts. Too many business owners focus solely on sales and revenue targets, while their actual profit—what supports their life—is shrinking behind the scenes.
You’ll learn how to calculate your profit margin, what it tells you about your business, and how to improve it through smarter pricing, leaner costs, and strategic decision-making. Because revenue might be flashy, but profit is what pays you.
About the Podcast:
This episode of the Financially Healthy Business Podcast shines a light on a crucial but often overlooked topic—profit margins—and why they matter more than most business owners realise.
I break down the essentials:
What your profit margin actually is (and how to work it out)
How to assess whether your pricing supports your lifestyle
Practical ways to reduce costs without compromising quality
You’ll hear relatable examples and leave with actionable steps to boost your profitability, reduce stress, and make sure your business is working for you, not against you.
In just 15–20 minutes, this episode gives you clarity, confidence, and the tools to run a business that supports your goals—and funds the life you want to lead.
Prioritise profit. Protect your peace. Build something sustainable.
Takeaways:
The podcast emphasizes the importance of profit margins over mere sales figures for business sustainability.
Listeners are encouraged to calculate their profit margins to gain better financial awareness and control.
It is crucial to understand that profit is what compensates business owners, not sales volume or turnover.
The episode discusses strategies for improving profit margins, including cost reduction and price increases.
Profit margins provide essential financial flexibility, allowing business owners to maintain stability and growth.
The episode concludes with a reminder that businesses should be designed to support a fulfilling life, not merely to exist.
Foreign Healthy Business Podcast for business owners who want the confidence on cash flow that supports the life they actually want to live.
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I'm Deb Halliday, Profit first professional founder of award winning accountancy practice the Accounts Ladies and the Accounts Office Academy and author of how to Build a Financially Healthy Business.
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Learn how to take control of your finances, reduce stress and grow sustainably because your business should support your life, not consume it.
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Let's get started.
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Welcome back to the Financially Healthy Business Podcast.
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I'm Deb Halliday and today we're shining a light on something most business owners overlook.
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Your profit margins.
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We obsess over sales figures, but here's the truth.
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Profit is what pays you.
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Not sales, not growth, not turnover.
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Let's dig into why this matters and I'm going to use small numbers so it's easy to follow along.
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Profit margin is the percentage of your revenue that turns into actual profit after costs.
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Let's simplify it.
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If you sell a service for £100 and it costs you £60 to deliver materials, time, software, that leaves £40.
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Your profit margin is 40%.
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But what if you could deliver it for £50 or charge £120?
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That's where the power lies.
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Here's why this matters.
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Big sales numbers mean nothing if there's nothing left at the end.
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I've seen businesses with £50,000 in turnover but only £2,000 in profit.
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Barely enough to live on.
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Profit margins give you breathing room.
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Your task this week.
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Pick one product or service and calculate your margin.
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Ask what does it cost me to deliver?
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Include time, tools, everything, what's left over, that's your profit.
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Then ask can I increase the price, reduce the cost, or both?
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Maybe negotiate with a supplier or test a 10 pound price hike.
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We cover all this and much more in our program Financially Healthy Business.
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For more info, visit at Financially Healthy Business.
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Let's make sure you're keeping more of what you earn.
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Next time, we'll talk about when and how to raise your prices.
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See you soon.
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Thanks for tuning in to the Financially Healthy Business podcast.
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If today's episode helped you take a step closer to building a business that supports your life, share it with a fellow business owner, follow the show or leave a review.
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It all helps to get the message to the people that need it.
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For further Support, head to ww.financiallyhealthybusiness.co.uk to find out more information on my online coaching program.
