In this episode, I’m talking about why revenue growth on its own is often misleading — and why it can actually make a business feel less stable, not more.

Many business owners assume that higher revenue will automatically ease financial pressure. But what I see time and time again is the opposite. As revenue increases, expenses quietly rise alongside it, leaving the business busier, more complex, and no better off financially.

I explain why revenue is not the same as profit, and why growth without profit protection simply magnifies the problems that already exist. Without clear boundaries, a growing business becomes harder to manage and more stressful to run.

Using the Profit First approach, I show how prioritising profit before expenses creates a different kind of growth — one that’s sustainable, intentional, and aligned with both business goals and personal wellbeing.

This episode is about stepping back from growth for growth’s sake and designing a business that grows in a way that actually supports your life.

Takeaways:

1. In the realm of business, revenue growth does not inherently equate to increased profitability, as expenses often rise concurrently, thus obscuring true financial health.
2. The Profit First methodology emphasizes prioritizing profit before expenses, thereby ensuring that growth occurs within sustainable boundaries that support the owner’s life.
3. It is imperative for business owners to recognize that unchecked growth can lead to heightened stress and financial instability, rather than the anticipated relief.
4. Achieving a financially healthy business necessitates a paradigm shift: prioritize profit, ensure sustainability, and then pursue growth, rather than following traditional approaches.
5. The notion that revenue growth alone solves financial problems is misleading; instead, one must evaluate what fundamental changes are necessary to enhance overall financial well-being.
6. In future discussions, we will explore the shortcomings of traditional budgeting practices and present more effective strategies that align with real-world business dynamics.

Links referenced in this episode:

1. debhalladay.co.uk

Companies mentioned in this episode:

1. Accounts Ladies
2. Accounts Office Training Academy
3. Profit First
4. debhalladay.co.uk

Welcome to Profit first with Deb Halliday.

That's me.

I'm Deb.

I'm a Profit first professional and trainer, author of how to Build a Financially Healthy Business, founder of the Accounts Ladies, an award winning accountancy practice and the Accounts Office Training Academy.

This is the show for business owners who want to stop stressing over money, keep more cash, pay themselves more and build a business that truly thrives.

Just a quick note.

Profit first is a licensed methodology.

Everything here is designed to help you implement it in your own business.

If you're interested in helping others with Profit First, I'll share how you can apply to become certified too.

Let's get started.

Because your business should work for you, not the other way around.

There's a moment I see a lot in growing businesses.

Revenue is up, sales look good, work is flowing.

And yet the stress hasn't gone away.

In some cases, it's worse.

That's when business owners start to feel confused.

Because growth was supposed to fix this.

We're taught to believe that revenue growth is the solution to most problems.

More money in means more money left over.

Except that's rarely how it plays out.

What actually happens most of the time is this.

As revenue grows, expenses quietly grow with it.

New tools, new hires, more subscriptions, more complexity.

And before long, the business is doing more but keeping roughly the same, or sometimes less.

This is why I say revenue growth without profit is a trap.

Because it gives the illusion of success while increasing pressure behind the scenes.

I've worked with businesses that doubled their revenue and felt worse off financially than before.

Not because growth is bad, but because growth without boundaries is dangerous.

Traditional accounting logic tells us, grow first, control costs later, profit will follow.

But human behaviour doesn't work like that.

When more money flows into a business, spending tends to rise to meet it.

Not out of recklessness, but because capacity expands, expectations increase, and nice to haves feel justified.

That's Parkinson's Law in action.

So when revenue increases without profit being protected, the business simply becomes a bigger version of the same problem.

More activity, more responsibility, more stress.

This is where profit first creates a necessary pause.

It doesn't stop growth, it disciplines it.

By allocating profit first before expenses, you force the business to grow within limits.

The business still expands, but it does so intentionally.

When profit is prioritised, growth decisions slow down, spending becomes deliberate, capacity is built carefully.

And most importantly, growth starts to support your life, not consume it.

Here's something I want to be very clear about.

Growth is not success.

If it comes at the cost of stability.

And revenue is not a win if it doesn't translate into real financial security.

A financially healthy business grows in the right order.

Profit first, sustainability second, growth third, not the other way around.

If you're listening to this and thinking right, but I just need to grow a bit more first, I'd encourage you to pause, because growth doesn't fix a profit problem, it magnifies it.

The better question is this what needs to change?

So growth actually improves my financial position, not just my workload.

That's where real progress begins.

In the next episode, I'll talk about why traditional budgeting fails so many business owners and what works far better in real life.

Thanks for tuning in to Profit first with me, Deb Halliday.

If you found today's episode helpful, please subscribe, leave a review, and share it with another business owner who needs to hear this.

For more resources, courses and to connect with me, head to debhalladay.co.uk and remember, when you put profit first, you build a business that reduces the stress while it supports your goals and dreams.

See you next time.