A Smart Bear · Jason Cohen
articleprincipleProfitable on day one!
25 August 2024Profit
Source excerpt
About A Smart BearYou're not profitable if you couldn't afford someone else to do your job. $1000/mo isn't profitable. Fix your definition of "profitable," and build a truly profitable business.
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Apollo layer
What a founder can learn
Founder takeaway
Define profitability after accounting for the market cost of replacing your own labor—not merely as revenue exceeding cash expenses.
Why it matters
Ignoring founder labor can make a low-paying job look like a healthy company, masking whether the business can hire, scale, or operate without you.
Relevant guides
Put it to work
Recalculate last month’s profit after adding a realistic salary for every role you perform. What price, cost, or workload must change for the business to remain profitable?
Private notes