Journey To $100 Million

Today’s guest host is Michael King, CEO of KFE Solutions and fellow podcaster of the show called In the Trenches. Michael is often asked what the number one mistake is that business owners make when it comes to their finances. That's a pretty easy question for Michael to answer. He believes the biggest mistake made from the newest of entrepreneurs to CEOs of large corporations is not knowing the four most important metrics of their business. They are: revenue, gross profit, net profit, and cash. Revenue is the total of your sales from your product or service. Most everyone knows and tracks revenue. Next is gross profit. An example is if you sold coffee cups for $1, and you bought those cups for $0.20 from your supplier. Your gross profit would be $0.80. Net profit is then your gross profit (in this case $0.80), minus overhead costs (say that is $0.30 per cup). That leaves you with a net profit of $0.50 per cup sold. These are all important numbers to know but at the end of the day the most important number