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.