Running a small business takes everything you’ve got. You’re hustling every day, but it’s hard to know if the business is actually putting money in your pocket. Profit isn’t just about selling more, it’s about what you keep after the bills are paid. At Nexera Consulting, we help owners get a simple, honest view of their numbers so they can make decisions that actually move the business forward.
Why Profitability Matters
Profit is what keeps the lights on. It’s what lets you pay yourself, pay your team, and stay steady during slow seasons. Plenty of businesses look busy but still lose money, and most owners don’t see it until it’s too late.
Step 1: Understand Your Costs
List out every expense. Not just the big stuff, the small fees, subscriptions, and “one-offs” add up fast. Payroll, supplies, marketing, insurance, equipment… it all matters. Once you see the real total, things start to click.
Step 2: Track Your Revenue Accurately
Your revenue isn’t just the number on your POS or invoice system. Think about refunds, discounts, late payments, and unpaid invoices. Make sure you’re looking at the dollars that actually hit your account.
Step 3: Calculate Your Profit
Subtract your total expenses from your real revenue. If it’s positive, great, you’re profitable. If it’s not, don’t panic. It just means something needs adjusting, and there are clear steps to fix it.
Step 4: Look Beyond the Bottom Line
A business can show a profit on paper but still struggle with cash. If money comes in late or bills pile up, cash flow gets tight. Checking your cash flow weekly helps you stay ahead of problems instead of reacting to them.
Step 5: Take Practical Next Steps
- Review expenses: Cut or renegotiate anything that doesn’t truly help the business.
- Update your pricing: Make sure your prices cover costs and leave room for profit.
- Invoice quickly: Get paid faster and keep cash moving.
- Get support: A financial expert can help you spot issues early and build a plan you can trust.
At Nexera Consulting, we get what it’s like to run a business in the real world. Our goal is simple: give you clarity, confidence, and a financial plan that actually works. If you’re not sure whether your business is truly making money, reach out. We’ll help you understand your numbers and take the right next steps.
