Let’s simplify this, because profit margins have been overcomplicated and misunderstood for far too long.

A profit margin is not greed.
It is not extra money.
It is not a reward you give yourself for working hard.

A profit margin is what your business keeps after it pays for what it costs to operate. And that money has one very important job. It builds your cash reserves, which are what allow you to hire great people, weather hard seasons, and lead with clarity instead of fear.

Why Revenue Alone Keeps You Stressed

A lot of business owners chase revenue. Big months. Big goals. Big numbers. It feels incredible to land that huge contract. Until you have to front the costs. Until purchase orders do not get paid on time. Until what looked like a profitable job starts costing you money and tapping into your reserves.

You can bring in a lot of revenue and still have an empty bank account. That is why profit margins matter so much to the financial health of your business.

And yet, you feel guilty charging what you should. I often hear, “I’m not in it for the money,” as a way to feel humble, noble, and somehow okay with operating in constant stress or near-poverty.

Why Profit Feels Uncomfortable for So Many Owners

This is where guilt shows up. Most business owners have big hearts. You want to be fair. You want to be helpful. You want to be affordable. Somewhere along the way, profit got confused with selfishness. But profit is not money taken from others. Profit is money set aside for the future and well-being of your business.

Your clients do not want you to be bankrupt. In fact, most would be horrified to know how much you are sacrificing by charging the bare minimum.

Without profit:

• there are no reserves
• there is no cushion
• there is no stability

A business without profit is a fragile business, no matter how good your intentions are. And a fragile business does not just affect you. It shows up in your marriage. It shows up in your family. It shows up in the way you carry yourself in every conversation and inner monologue.

Profit Margins Are How Reserves Are Built

This part is crucial if you want to become a sustainable business owner. Reserves do not come from working harder. They do not come from hoping for a good month. They do not come from scrambling at the end of the year to “finally” off load your inventory.

Reserves come from planned profit. That is why I created the EPI formula: Expenses + Profit = Income.

You do not grow first and hope profit survives. You decide on profit first, then build income goals that support it. When profit is planned, reserves grow naturally and create abundance. When profit is ignored, reserves never appear and you stay stuck in scarcity.

Why Strong Margins Create Better Leaders

When profit margins are thin, leadership becomes reactive. Often, it turns into victim thinking:

•         Someone did you dirty.
•         A client is a nightmare.
•         If only this happened. If only that changed.

That mindset keeps you in a downward spiral and changes how you communicate, how you lead, and how you show up. Strong margins regulate your nervous system. And regulated leaders lead better businesses, build stronger teams, and attract better clients.

Final Thoughts from Your Favorite Accountant 🧡

Strong profit margins are not about ego or excess. They are about longevity.

They allow you to:

• build reserves
• weather slow seasons
• support your team
• plan long-term
• lead with calm instead of chaos

Profit margins are not about being greedy. They are about being responsible and creating a financial foundation for your business.

If you want to build profit in a way that feels aligned, ethical, and sustainable, I am here to help.

Next steps if you are ready:

• Hire My CFO for done-for-you bookkeeping
• Invest in My CFO Financial Advisory workshops
• Use my STOP Method book and workbook to structure profit and reserves with intention

👉 Because at the end of the day, cash flow isn’t luck, it’s strategy.