Let’s Define Profitability
Before we talk about becoming profitable, let’s get on the same page about the meaning of the word. Technically, when your revenues exceed your expenses, you’re making a profit. But there’s profit and then there’s profit. The phrase "ramen profitable" describes a business owner who is barely making enough to earn a small salary and pay living expenses. Obviously, this shouldn’t be your goal. Instead, you’ll want to pass that point to get to what’s called corporate profitability, which is when you have remaining capital after all expenses and salaries have been paid. Those are the type of profits referred to in this article.