292 - Why Growing Revenue Won’t Fix a Profitability Problem with Arron Bennett
Revenue can climb while cash gets tighter, margins shrink, and the owner ends up working harder for less. Arron Bennett explains why trying to outgrow a profitability problem usually magnifies it: when the economics are broken at $1 million, adding more sales can simply scale the damage.
Arron introduces a framework built around 60% gross margins, 15% for sales and marketing, and 15% for general and administrative costs. Those targets help owners look beneath a disappointing profit number and find the real constraint—whether it is pricing, an overloaded service package, inefficient delivery…
The skinny
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