Profit Requires Focus–So Ditch the Losers

The Revenue and Profitability Grind

When it comes to profitability, it all comes down to the basics. Revenue might be the lifeblood of your business, but the real heartbeat is talking to customers. I’ve built my success by simply listening to what the customer had to say. To this day, this is still a unicorn strategy.

One conversation, one simple moment of listening, can unlock an entire business blueprint that tells you what to build–and how to make it profitable.

How often do we miss this opportunity? We’re so quick to pitch our features, benefits, and value propositions, but we forget that our job is to solve problems. Sometimes, salespeople aren’t in a position to create a product, but they sure as hell should be able to feed that info back to leadership. This isn’t about taking a 180–degree turn and becoming a taco franchise overnight, but it’s about listening closely enough to know where you can expand, adapt, and create value in the simplest of ways.

The problem happens when you let your ego or impatience get in the way. Too many businesses derailed because they weren’t focused on their core strengths, trying to go down paths that made no sense just to impress investors or chase a shiny new thing.

Scaling a business isn’t about reinventing the wheel or thinking someone must have a better formula. It’s about doubling down on what already works.

The M&A Myth

If you’ve been through a private equity acquisition, you’ve probably seen it firsthand. After a successful exit, founders can’t wait to start “buying and selling companies.”

Newsflash: Just because you sold your company doesn’t make you the next Warren Buffett.

I’m not saying M&A is a bad strategy–it absolutely has a place. But here’s a little nugget of experience: if you’ve just cashed out with PE money, you’re not suddenly qualified to lead a billion–dollar acquisition operation without some serious consideration.

You think you’re now the next Steve Schwarzman or Richard Branson?

Newsflash: You’ve sold out. Embrace your new financial resources and grow the businesses that made you successful in the first place. Understand your strengths and commit to be all in or, it’s ok, please go full Tommy Bahama package and rest in the Florida Keys, knowing your strengths.

Or trust the strategic entrepreneurs dedicated to growth who bought your business and skip the imminent embarrassment by making a fool of yourself trying to juggle deals that you aren’t qualified to handle. Settle down in South Carolina and eat Kiwi for breakfast, lunch, and dinner in the PE paid for Cinderella Castle.

Let those invested in the new enterprise who took on our debt bring you a faster 3x return by staying out of the way.

The Profitability Triangle

Now, let’s talk about the holy grail of profitability. The one triangle that holds everything together: People, Processes, and Technology. When you start making money, everyone gets excited.

But what’s the next step? How do you spend that money wisely?

People are the backbone of your business, and they don’t have to be “corporate rockstars.” These are the folks who know your product inside and out, the ones who can talk shop and pick up the phone when needed. They’re the ones who get their hands dirty, who keep the wheels turning. If you’re lucky enough to find a few of them, hold on tight.

Processes are what make scaling possible. Without them, you’re just throwing spaghetti at the wall. These systems streamline your operations, eliminate redundancies, and make sure you’re not doing the same thing over and over again just to keep the lights on.

Next up, business tech and systems. Tech is not just about having the latest AI elevator pitch based on the last long forum business podcast you listened to at 1.5x speed on your flight to San Diego, it’s about creating tech based on your subject matter and processes that consistently enable profitable transactions.

Technology strategy is only as good as the people who created it to solve a business problem and the processes built to support the algorithms. Without these two things in place, you build it, and they will come, and iOS or Android applications are just noise.

Let Go to Scale

For all you entrepreneurs who still can’t let go of the reins–take a breath. The hardest thing for a founder is to step away and trust that your team can handle things. You’ve been in the trenches, running things, making the decisions. I have nothing but the utmost respect for the blood, sweat, and tears that created your success.

Not to mention the emphatical focus required to understand a business at a client and transactional level–it is what sets us apart.

But here’s the reality: the more you try to be someone you aren’t, the less profitable your sold business becomes and the more of a mockery your business becomes to your “legacy.”

It’s time to shift from “working in your business” to “working on your business.” When you get there, you’ll see that everything else starts to fall into place. Your team picks up the slack, your systems run themselves, and you can focus on growing your business in ways you never thought possible.

Profitability Isn’t a Destination. It’s a Lifestyle