Today, we embark on an enlightening discourse centered on the quintessential theme of profit—a topic that serves as the lifeblood of any enterprise. As we delve into the intricacies of what generates profit, we shall explore not merely the figures that populate our balance sheets, but also the profound connection between profitability and our overarching purpose in business.

Drawing from personal anecdotes, including the challenges faced during the merger of Allume with Altcoin, I invite you to reflect on the sacrifices made in pursuit of sustainable growth, serving not just shareholders but the wider community as well.

Through this masterclass, we shall dissect the data-driven methodologies that illuminate which products and services are truly propelling our profitability, allowing us to align our efforts with customer demand and financial returns.

Join me as we unravel the layers of profit generation, transforming it from a mere metric into a robust tool for fostering meaningful impact and enduring success in our ventures.

Takeaways:

• In entrepreneurship, profit emerges as the lifeblood that sustains the organization, fostering both prosperity for stakeholders and the capacity to fulfill the company’s purpose.
• The enlightening journey of understanding profit necessitates a meticulous analysis of customer demand juxtaposed with financial returns to cultivate sustainable growth.
• By leveraging data-driven insights, founders can illuminate which products and services yield the highest profit margins, thus strategically focusing their resources for maximum impact.
• A holistic approach to profit not only empowers businesses to refine their offerings but also facilitates a culture of transparency and collaboration among team members to foster a unified vision.

Chapters:

00:24 Introduction to Profit Mastery

00:58 The Emotional Journey of Leadership Decisions

12:25 Understanding Profit: A Deep Dive into Financial Metrics

18:21 Understanding Profit Generation

20:27 Understanding Profitability: Key Insights for Founders

28:28 Introduction to Gross Margin Analysis

32:24 Analyzing Sales and Revenue Data

36:50 Identifying Profit Drivers and Strategic Focus

42:19 Understanding Profitability and Growth Actions

Burning Questions Answered:

1.How do I know which of my products are actually profitable?

2.What’s the difference between gross margin and gross profit—and why does it matter?

3.Why does high revenue not always mean high profit?

4.Which offers should I drop, and which deserve more investment?

5.How do I align my team around the right products to scale?

This episode part of the Force for Good Tool of the Week Series! Each week we feature one of the 100+ Force for Good Tools.

**These tools are free this week at https://aforceforgood.biz/weekly-tool/ **

*** The Full FFG Toolkit is available with A Force for Good, the Book: https://aforceforgood.biz/book/***

****Have questions on how to pioneer your 100 Year impact plan? Schedule time with Coco: https://calendly.com/coco-sellman/zoom-office-hours-clone ****

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Coco Sellman, the host of the Force for Good Business Show, believes business is a force for good, especially with visionary women at the helm. With over 25 years of entrepreneurial experience, she has launched five companies and guided over 500 startups. As Founder & CEO of A Force for Good, Coco supports purpose-driven women founders in unlocking exponential growth and prosperity. Her recent venture, Allumé Home Care, reached eight-figure revenues and seven-figure profits in just four years before a successful exit in 2024. A venture investor and board director, Coco’s upcoming book, *A Force for Good*, reveals a roadmap for women to lead high-impact, high-growth companies.

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Welcome to Sell Less, Profit More, Unlock Smarter, More Sustainable Growth with the what Generates Profit Clarifier.

I am your host, Coco Sellman, lifetime founder, impact Investor and creator of the Force for Good Business System.

I am honored to share with you today a masterclass on the topic of profit.

As I was preparing this morning for this conversation with you on profit, it brought me back to when I was merging Illume with Altcoin.

We had gone through the journey of signing a deal and we're merging our two companies.

I knew in my heart it was the best thing for everyone, but it didn't feel like it at the time.

It was hard for me, it was hard for my team, it was hard for my partners.

But I knew in my bones it was the right thing to do.

And so it made me remember and think about the time I was writing my book A Force for Good.

I was listening to the book this morning, as I often do when I'm preparing for these masterclasses and it reminded me of why I wrote the book.

It was at that time when I was merging the company, doing hard things, moving through the emotional challenges that come with sometimes doing what's best.

It was the sustainable right thing.

We're all involved and it wasn't easy for everyone.

And there were sacrifices that I had to make personally and that others had to make personally that were hard.

As I was listening to the book this morning, I thought I would share with you a little bit from the book because it reminds us all of why we create our companies.

Right?

We're here to build a business of substance and scale that creates a positive impact on the world.

We want to be of service to our constituents.

We want to solve the challenges and problems that they face.

So our company exists to be of service.

The book a Force for Good and System within it and all of these master classes are intended to help you build a company that more sustainably accelerates three things, impact, scale and profit.

In this conversation on profit to remember where it fits in the bigger picture, in the book introduction it says why Grow Impact Impact is the measure of good you bring to those you serve, your customers, employees, partners, your larger community, the industry as a whole, and the wider world.

It is the measurable progress of a company's purpose that's impact.

Why grow Scale?

Bigger isn't necessarily better.

Scale within our Force for Good context is grounded in purpose within these parameters.

Scale is important for two reasons.

First and most important, scale is the manifestation of your vision.

It is the realization of what you hope to deliver to the world on maps.

It's your purpose fully executed.

Second, though practically speaking, you will need a certain level of scale to create the funding or gross profit necessary to support your purpose.

Without an adequate number of customers or units sold, you will not be able to keep the light on, hire the brilliant team, implement state of the art technology, or build the most elegant solutions for customers.

Scale is needed for impact.

It is also needed for profit.

So why grow profit?

Profit is the life force of your company.

It allows you to create prosperity for your team, your shareholders and yourself.

Profit broadens horizons, leads to new levels of breakthrough and drives more good into the world.

Profit is meant to be a force for good.

Today we are talking about profit.

As we enter this conversation, we're going to be looking at profit from a very data driven perspective.

I invite you to see that profit is connected to your purpose.

It is a measure of your purpose.

It is the life force of your ability to manifest the purpose of your business.

Whatever that purpose happens to be.

Make the world better.

The women led business to provide remarkable care.

Whatever it is Disney to make people happy.

So whatever your purpose is, profit is the way to do that.

And so as we look through this in a somewhat mechanical and data driven way, keep in mind these parts of what we're talking about.

So I'm going to invite you to see profit and some of the challenges you might be having.

Are you selling lots of things but unsure which ones are truly fueling your growth?

Do you sometimes feel like you're working harder but not seeing a rise in profitability?

Got more customers?

Maybe you're starting to sell more widgets, but you are still not bringing home as much to your bank account.

Are you guessing which products deserve more attention and which should be let go?

Do you long to build a business that grows both revenue and value without draining your energy?

So sometimes we think more profit, more scale, or in fact just it means harder.

I and it doesn't have to be that way.

And by using these tools and concepts, the goal is that you will start to work differently with your team.

And so one day, one week, one month, one quarter, one year at a time, you start to spin the flywheel not by yourself, but with your team.

Today we're going to focus on what generates profit and start to have these conversations with your team.

What generates profit refers to the specific products and services that are driving both strong customer value and healthy profitability for your business.

This journey today includes a clear eyed analysis of what's selling most consistently, what's generating the highest Profit margins per unit and what's contributing the most total profit overall to your company.

Knowing what generates profit helps you focus on the intersection of customer demand and financial return so you can double down on what's truly working to fuel sustainable growth.

This is where you are really listening deeper to your customers.

You're hearing specifically where it is they are showing up and say, yes, I want to buy this.

This is important enough to me that I will invest my time, my money, my resources into this.

It's how you measure whether something is truly of value to your customer because they'll pay for it.

So then you're also going to say, well, how is this really working out?

Is there a financial return and where is their financial return?

And you'll start to see this as you do the analysis and use the tool for today.

So let's understand profit a little bit before we dive into what it is that's going to create profit.

So here we're going to look at an income statement.

So understanding profit, this is an income statement and overall what it's doing, it's showing you for a period of time how much revenue, gross profit, expenses, net income before taxes, and net income there is showing you for a particular year, for example, or particular month.

So this is revenues, a reflection of the impact and scale, right?

It's saying, here's how much we were able to sell.

Revenue is your price and how much people actually paid for it.

Next is the cost of goods sold.

And this is everything that it costs to make or produce whatever you're selling.

So if you're selling widgets, it's the cost of actually building the widgets.

It's not the cost of the building that the widgets are made in.

It's not the people that are running finance.

It's just the cost of what it takes to build the widget.

Now, if you're in a service business, then it's the cost of the people that are doing whatever the service is.

So my health care company, it was the cost of the nurses.

How much per hour did we pay them versus how much per hour were we being paid?

What was our price?

So here's where you are looking at your revenue, your cost of goods sold, and then your gross profit.

This is really fundamentally what we're talking about today.

What's creating the most profit?

Gross profit?

Gross profit is when you take the revenue minus the cost of goods sold and that becomes your gross profit.

In this example, you have $350,000 of gross profit and you have your expenses of 258,000.

This is for your.

All the expenses in your company that aren't related to selling or building your product.

And then you have your net income of 91,000.

So you want to make sure that your gross profit is always above your expenses, because that's when you break even.

You also want to see where can you create more gross profit, meeting the needs of your customers in the most profound ways and not spending money on things you don't need to spend money on.

Up in cost of goods sold.

So it's a way of becoming more and more refined to create value needed by those you serve and not having extraneous costs that aren't building value.

So we're looking at which products, which solutions you're selling are meeting that need.

We're looking for what drives the most gross profit.

Because the higher my gross profit is, the more choices I have on how I run my company, whether I invest more in my people and my product, or whether I pay myself or I pay my shareholders.

Understanding profit is really key, and understanding its connection to how you serve and why it helps you create impact and scale and value.

Here, what generates profit?

We're going to look at a specific example.

This is a fictitious software as a service company.

This company sells a starter plan, a pro plan, and an enterprise plan.

The starter plan costs $49.

The Pro plan is 199 and the Enterprise is 799.

And then we ask ourselves, what does it cost for me to build the starter plan and to execute it?

Oh, it costs $5.

That means $49.

Five is $44 in gross margin.

So I can see right there that I am getting 90% gross margin on every starter plan I sell.

The enterprise plan, which sells for $799 and has a cost of $150, has an 81% gross margin.

So it feels like it's less valuable because it has a lower gross profit margin.

But we don't really know that until we look at the next piece, which is how many are sold.

Twelve hundred people buying the starter plan, 800 the pro, and 150 creating enterprise.

We have $60,000 or 58.

Eight from 800 customers creating 159,000 in revenue.

And the enterprise is 150 customers generating 119,000.

How much are we actually making from that?

What's the total amount of money we're making from those customers?

Let's go over to this column that says TTM gross margin for the last 12 months we had revenues of 58,000, 159,000 and 119,000.

For gross margin, you can see that 52,000 in gross margin came from starter, 143 came from the pro plan and 97,000 came from the Enterprise Plan.

So this helps you see that while the starter plan has 90% gross profit, in reality the enterprise plan which has 81% is generating twice as much gross margin to your company.

Right.

So the highest number of customers was the Starter Plan.

The highest unit volume sales was also the Starter Plan.

The highest profit per unit was the enterprise plan 649 and the highest total gross profit dollars pro plan.

So 143.

This helps you see what generates profit here.

The Pro Plan stands out as the best balance of high sales and high profitability.

The Enterprise Plan yields the highest per unit profit but serves fewer customers.

The Starter plan drives volume, which is valuable for upsell potential.

So here's where we're understanding our products and their positioning and why we do what we do with them.

Another example is a fictitious pharma company.

We've got three products, Pain Relief XR, Sleep Aid plus and Immunoboost.

The highest number of customers comes from Pain Relief XRP.

So we have 18,000 customers that are buying Pain Relief XR.

The highest unit volume, 20,000 units is also Pain Relief XR.

But the highest profit per unit is Immunoboost, which happens to be 215 per unit sold.

But the highest total gross profit dollars comes from pain relief xr.

So 1.9 million is what the total gross profit is for this product.

So what generates profit then?

Pain Relief XR is the clear driver of volume and profit.

Immuno boost, while high margin has limited reach.

So an approach might be doubling down on Pain Relief XR while growing Immunoboost strategically could yield strong returns.

So you see how these numbers can help you.

The other thing we didn't talk about in this, how many are repeat customers?

Right.

So you can see in this total units sold over the last 12 months, 20,000.

And the total TTM customer.

So the total customers trailing 12 month customers was 18,000.

So you can see how many customers were buying each of them.

And there are some repeat customers here as well.

We're going to talk about where this fits in the bigger parameter of your business.

What generates profit is one of the legs of the force for good flywheel.

It is one of the core growth elements.

Each core growth element on its own is intended to be a place where you can generate more impact, scale and profit.

Together with the other elements, it can help you drive sustainable growth.

So what Generates Profit Clarifier is what we're going to focus on today.

It's the tool that you can download at a forceforgood Biz weekly tool.

It's free this week for our listeners.

Today we're going to walk through the what Generates Profit Clarifier so you can define for yourself what's generating profit and identify one habit and one action that will help you implement the gifts of today's conversation and get the growth, impact, scale and profit that is promised by this tool.

All right, let's talk about why it's important for you to do this tool and this masterclass.

A lot of founders, myself included, for a long time avoided doing this.

One reason is you're just too busy working in the business.

Daily operations and client demands crowd out any kind of strategic reflection time even when profitability is on the line.

The other big reason, and I've been totally guilty of this, I assume I already know.

Founders assume they already know what's generating the most profit.

Many founders trust their intuition about what is and isn't working without actually looking at data.

And the more you develop the skill of looking at data with your team, the faster you go from being the only person that can run your company to having it be distributed throughout your team.

Another reason is that it feels overwhelming to gather the numbers if you don't have a regular practice of building an income statement like we just looked at a few minutes ago.

If you're not doing that on a monthly basis, then finding those numbers is going to feel overwhelming.

However, once you develop that important habit of looking at it, you will have mental clarity about your fiscal standing.

A reason we avoid it is the fear of what the numbers might tell us, right?

Once we go through the fear we have the numbers, we can actually do smart things with it.

We can solve the puzzle of growth.

Another reason is the team is emotionally attached to low margin offerings.

I've had this happen to me so many times.

Oh, but I love this product or service.

It has to be this way.

It has to be delivered this way.

It has to have all these bells and whistles.

But then it becomes time to really check in and see is it really working.

Another reason is a founder might never have seen profit clearly modeled, right?

Most early stage companies focus on top line revenue, not bottom line results.

The other reason is that it surfaces hard choices.

This process may highlight the need to sunset certain offerings, restructure pricing, shift team priorities.

It can feel disruptive, it can feel uncomfortable.

It's important to remember that not all revenue is good revenue, right?

We want to find the most profitable revenue and I've seen this happen many times.

Pricing is structured in correctly or they're overinvesting in marketing a product that is not actually selling.

Or they've designed a product in a way they think is advantageous.

But you end up not being profitable.

So why it's worth the time.

Today you discover your most powerful levers or growth.

Truly knowing what generates profit allows you to double down on what's works and it grows your confidence.

The nice thing about profit is that it is truly reflective of where your customer is happy.

And it's also where you can do it as a company in a sustainable way and keep delivering value.

The second reason is you align your team around what matters so everyone from ops to marketing can focus on the offerings that truly drive results.

You also unlock smarter pricing, packaging and promotion.

You might find that your most high volume sales item is not very profitable.

So then you can look at what can I do to create more profitability from this product?

How can I evolve my pricing, my packaging, my logistics, my recipe?

Profit data becomes the foundation of for your strategic decisions around the business.

You will quickly identify waste and opportunity and this will feel good.

Becoming a steward of your treasures, including your cash and the revenue that comes in will make you feel strong, powerful and successful.

You can reduce investment in underperforming offerings and redirect resources toward higher winners.

You become investor ready.

Clear data on profitability strengthens your story with funders, partners and potential acquisition partners.

So you build a company that can scale and sustains and you can prioritize what drives customer value and profit.

And this is how high impact companies grow without burning out and how you as a founder can grow without burning out.

So we want to scale what works and drop what drains.

Where does this fit on the four page growth plan?

As you know, we return in every masterclass from the toolkit.

We talk about one of the corporate elements, part of your flywheel that sits on the four page growth plan.

Together these things help you unlock the puzzle of growth.

This topic, knowing what creates profit sits on page two at the top it is a table that helps you list out all of your products.

We define the price, the cost, the margin, et cetera.

And we look at history too, moving right in to the what generates profit clarifier where we're going to list your solutions, analyze your solutions and identify what Generates profit.

Know that you are going to not have all the numbers in front of you unless you push pause right now and gather your income statement with metrics.

Otherwise you're going to be guessing, and that's okay.

Start with whatever information you have.

The guess is better than not doing it.

Just today's information with guesswork will empower you.

Then you can go back and get the details from your systems.

So the tool's designed to help you explore your many product and service offerings and identify which solutions are truly amplifying profit.

So you're going to find out three things.

We're going to look for which products and services you're most successfully selling.

So, highest unit volume.

And then we're going to look for which products and services have the highest profit per unit.

So first thing, look at the what generates profit.

You'll see this table, and this is where I invite you to start to get to work.

List each product or service you sell, and if you have a long list of SKUs, maybe put it into product lines and then use average unit price and average unit cost.

Otherwise you have a manageable set, say less than 10.

I would say go ahead and do the exercise.

If you have great data already, well, then by all means do all of them.

Right, we're going to go through each columns.

First column is the unit price.

And so here on the screen you can see that I've listed out three pretend products.

Product 1, 2, and 3.

The unit price is simply the amount you charge the customer for one unit of a product or service.

Now, I want to say this because this is important.

Sometimes what our unit price is isn't what we actually sell.

Right?

If you give stuff away, don't worry, put the unit price here.

But what we're going to do later is look at the revenues booked.

And that's going to help us find out whether or not we're actually selling at the unit price or at a lower price because we're giving stuff away or giving discounts.

Unit price is the amount you charge a customer for one unit of a product or service.

So go ahead, write down the price, what you charge, that.

Next you're going to say, all right, what are my cost of goods sold per unit?

How much does it cost to produce that product?

The direct cost to produce or deliver one unit.

Fill in those numbers.

And so you can see here an example of product one.

We're selling it for $120 and it costs $25 to make it.

So the COGS is $25 next we go on to the unit gross margin.

So this is the dollar amount that you're making per unit sold.

The gross margin you're making.

So not the net profit.

Right.

Net profit takes place after all of your expenses.

This is the gross profit.

So we have $120 is the price, $25 is the unit cost.

So now the unit gross margin is 95.

So 120 minus 25 is 95.

Unit price.

Unit cost equals the gross margin.

Every time somebody sells this, this is how much money you're making.

I like that number in my head all the time.

That's more important to me than price, because price is not actually what's fueling my company.

What's fueling my company is the gross margin.

Next we're going to look at the gross margin percent.

I like gross margin percents because it gives us the ability to compare the profitability of each product.

Right.

The gross margin percent is the percent of revenue that remains after covering unit costs.

Unit gross margin divided by unit price times 100.

So in this case, we have product 1, $, 120 costs $25 to make it.

So we have $95 of gross margin.

We take the unit gross margin, which is 95, divide it by the unit price, which is 120, and we multiply it by 100, and that's how we get to 79%.

We can see in the gross margin percent that profitability is 79% for product one, 76% for product two, and 69% for product three.

So we know that per unit, product one is the most profitable.

Next, we keep going and we go to TTM Unit sold.

Okay, so I use this term, TTM a lot, and it refers to trailing twelve months.

When I was selling my company, I found out that the bankers and private equity groups all taught TTM what's my trailing 12 months.

They don't want to see last year.

They want to see the last 12 months.

That's what they really want to see.

That helped me realize that's really what I want to see as a business owner is the owner of the value in the company.

So we use TTM because that helps us know most accurately what's happened over the last 12 months.

So over the last 12 months, we're looking at the total number of units sold.

So look in your numbers as best you can.

Make some guesses.

How many units did you sell for each product in the last 12 months?

And let's say that right now you have no idea.

But you do know how Many you sold last year.

So give yourself a break and run your report and see what it says.

And write those numbers down if you're not sure.

Yes.

Come up with approximately.

Just write down how many you think you're sold.

Did you sell a hundred?

Five hundred?

A thousand?

Whatever the number is, it's okay.

It's totally a neutral number.

Just write it down really.

12 months, the number of units sold.

That's what you want to write down for each product or service.

Next you're going to look at TTM customers.

This is the number of unique customers who purchased at least one unit of the product or service over the past 12 months.

For example, in my healthcare company for complex care hours, we had a low number, like 200, 250 customers.

But our hours were really big.

So you might have a business that has high volume of units sold, or it might just be that like you sell one thing to that person, to every customer a year they have a subscription or they have whatever and it's one unit and that's what they get for the whole year.

Every business is different.

But the reason we have this column is so you can see how many customers are buying these products.

So if we look at the data here on the page, 18,000 customers in the last 12 months purchased product one.

And we also see that 20,000 units were sold.

So we can see that about 2,000 customers bought more than one.

That's interesting to know.

Product two, it was 15,000 units sold and 12,000 customers who bought it.

So there was some repeat sales.

Whereas product three, there was.

It was 5,000 customers that bought it and 5,000 units sold.

Moving on, we now look at trailing 12 months revenues.

How much actual revenue did you book for each product?

Don't just multiply unit price times the number of units sold.

Every income statement I've looked at, it's not perfect.

Usually there's some discounts or this or that.

So your revenue is different than what your actual unit price is.

So it's important to look at the actual revenue that was booked into your income statement for each product.

Then we're going to look at the average revenue per customer.

This is a simple calculation.

We're finding out how much, how much revenue did we make per customer?

Revenues divided by total customers, how much revenue per customer you generated.

So $133 is what we generated from each customer, each of our 18,000 customers in buying product one.

Then we're looking at how much cogs.

So again, we're looking back to the actual amount from your Income statement per product or service.

This isn't just okay, well here is my unit COGS, $25 times 20,000.

Your actual COGS in your income statement.

This is unit cost times the total units sold.

You want to pull this data directly for from your income statement.

Next is your gross margin.

Trailing 12 months gross margin.

The total gross profit for this product or service over the past 12 months you're going to pull directly from your income statement.

Look at the trailing twelve month revenue for each product and the trailing twelve month cogs for each product and that's going to give you your actual gross margin.

This is a really important column.

This column is telling you what really is generating the most profit in your company.

This column is saying we generated $2 million from product one, 1 million of gross profit from product three and 975,000 from product two.

It helps you see very clearly where the profit is coming from.

Last we're going to look at the total trailing 12 month gross margin.

And again this is a reflection of your actual data, not what you think it is, which is the first four columns, unit price, unit cost, unit gross margin and gross margin.

So you want to actually look at your data from your accounting system for each product and find out, okay, for the last 12 months, what does my gross margin look like?

The overall profit margin percentage for this offering over the past 12 months is how we calculate that.

Knowing which products and services you sell the most of this is going to start to illuminate a lot of power to you.

So then we go on to the next page of the what generates profit clarifier and start to analyze the data.

Look and see what are your highest number of customers?

Which products or services have the highest number of customers?

Saying yes.

And then the second is the highest unit volume sales.

Which products or services have had the most individual units sold.

Similar to the highest customer conversion, it's a measure of where you have had success moving customers to buy.

So highest unit volume sales and then highest profit per unit, which products or services are yielding the most profit per unit sold.

So write down what the answer is and just start to take the value of this information.

What insights are starting to percolate.

And next is what's the Highest total gross profit $?

So which products or services yield the total dollars profit to your company?

In this case on this examples, product one is generating the highest total gross profit dollars.

What is this information telling you now that you've reviewed all your products and services for both volume and gross profit.

Then the last section, what really does generate profit.

So summarize your takeaways from this analysis.

Which products would you like to devote?

Elevated focus as what generates profit for your company.

So this is where customer demand and financial return are intersecting.

When we look at the examples from above, you see your highest number of customers, highest unit volume, highest profit per unit, highest total gross profit.

And then you say okay, what's generating profit?

Well clearly this product is the driver of volume.

This one is the driver of profit.

I'm not selling enough immunoboost even though it has high margin.

So I would like to sell more of that.

What generates profit is doubling down on pain relief XR while growing immunoboost.

So you're going to take the information and make some decisions about what generates profit, Right?

Decide for yourself.

What are those statements you can make about what generates profit?

Which one to three products would you like to devote?

Elevated focus as what generates profit for your company.

You might also make some observations about we are selling a lot of something and it's not as profitable as we'd like.

What could we do to make that more profitable?

Now you have what you need to go back to the four page plan and update your data.

So you can put what generates profit in your plan.

You can insert the solutions data from part one and you can insert this, a star next to the solution that drives customer value and profitability.

Really take a moment and you've looked at a lot of data.

You've thought about profit and its driver as a force for good.

You've thought about it as a measure of customer value.

Acknowledge the wisdom you've received.

Acknowledge yourself for all of that.

You've clarified which offerings drive your business.

You've identified where to double down, spotted low margin distractions.

You found opportunities to optimize and you've chose a focused path for growth.

So take a moment to acknowledge all that you have gathered and learned.

Remember that profit is not selfish, it's sustainable.

We want to generate sustainable profit so that we can create more and more value for customers.

Next, update your plan.

We're going to talk about high leverage habits.

So what are the high leverage habits?

Repeat habits that generate breakthrough results.

What weekly or monthly habit keep you aligned with what generates profit?

You want to make sure you are looking at your income statement every month.

It would be great if your income statement has revenues per product hogs and then your gross profit per product or service.

If you can do that every month, you can look at those numbers and see what your profitability is and what's driving profit every month.

You could review top three gross profit drivers.

You could meet with finance to address pricing quarterly.

You could track gross margin percent.

You could share profit insights at monthly all hands meetings.

You can eliminate one low profit offer per quarter.

Profit is where purpose and performance meet.

Remember that it is another example of your greatness when you can extract purpose and performance together into the form of profit.

Last here is to identify a high potency action.

One powerful action you could take to really improve your profitability.

Certainly a high potency action would be to make sure you have the data available.

Meet with your accountant.

Meet with your bookkeeper.

Set up your chart of accounts in such a way that you can see this data on a monthly basis at least so that you can really drill down to the profitability of each product and service you have.

That's a big action if it's not already set up.

That way it will help you dramatically as your company scales.

Cut one underperforming service.

Make a decision to let something go is wasting your energy.

The customers aren't buying.

Invest more marketing in your top performer or in your most profitable performer.

That's not getting the attention because it's not actually selling as much.

You might need to reprice high cost offerings.

You might need to present findings to your team and align priorities to think together about the data that you've just gathered and figure out how can we create more value for the customer and ensure our own profitability.

You can't scale everything.

Know what to scale first.

This is really a question of profitability.

Where is the fuel aligned?

Where is the growth aligned with customer value and with your own financial performance?

All right, today we did a lot.

We talked about profit.

We defined the core growth element of what generates profit.

You learned how to use the what Generates Profit clarifier which you can now use with your team anytime you want.

You integrated this within the four page growth plan and you identified a high leverage habit and committed to a high potency action.

Good stuff.

Powerful growth begins with precise intention.

I encourage you to continue to be part of the Force for Good system.

If you don't have the book, get your copy.

The what Generates Profit conversation is part of chapter six and when you buy the book of Force for Good, you get the full Force for Good toolkit.

Which one of the tools today that we just reviewed was the what Generates Profit clarifier.

You'll get through that instructions for each tool and access to the Full Force for Good system.

You can also be a part of the Force for good Tool of the Week we launch a free tool and masterclass.

It's available for free for a week and by signing up at a ForceForGood Biz weekly tool you will have access to those tools in your inbox.

Lastly, I invite you to become a member of the Growth Accelerator.

It is the most comprehensive and accelerated way for you to install the system and see results.

It will help you one module at a time.

There's 12 modules implement the system and not just define each of the core growth elements.

It also helps you get the flywheel spinning so you'll receive videos, tools, assessments.

You can do it alone or with your team and pricing is very affordable.

Starting at $599 you can decide if you want to self implement or if you would like to do it with support.

You can learn all about it at @ForceForGood Biz Accelerator.

Lastly, I thank you for being here with me today and having this important conversation about profit.

Remember that the world is made better by women led business.

Let go make the world a better place.