What's more important? Gross profit or turnover?

Turnover is vanity, profit is sanity. In this video Ruth explains how it’s important to understand your businesses figures and the difference between turnover and profit.

Transcript: Gross Profit Over Turnover For Business

A: And this is a key tip, don't worry about turnover. It means nothing.

You know I can see The City from here and they are infatuated by turnover. And the whole thing of turnover's vanity? No, no, no.

When it comes to paying bills, I had a business walk in two weeks ago, who said to me: 'There's my consistent pipe line' and I tore it up and I give it him back and I said: 'Let me have a look at your consistent profit.'

What goes into your bank, what comes out of your bank, because actually I scab my business by three sizes, I increased my turnover by three times three years ago and my GP went [down].

Because if I charge out a thousand pound for a consultant, and I'm paying them seven hundred and fifty quid, my turnover has gone dramatically up and I'm not actually earning that much more money.

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