Hi there,
When most business owners talk about growth, they usually focus on one of two things:
👉 Revenue ("We just hit £500k this year!")
👉 Net profit ("We made £30k, not bad!")
But here’s the truth:
Neither of those tells you the full story.
If you really want to understand the engine that drives your business—and how to scale it sustainably...you need to be laser-focused on one number:
Gross Profit.
Why? Because gross profit is what feeds your business.
Let’s break it down:
- Revenue is vanity.
- Net profit is the outcome.
- But gross profit is the driver.
Here’s what most people miss:
Once you’ve covered your fixed overheads - your rent, central salaries, software, utilities, then every additional pound of gross profit goes straight to your bottom line.
Let me repeat that:
Once your overheads are covered, every pound of gross profit is pure profit.
So if you increase gross profit without increasing overhead, your net profit rockets.
Let’s say your monthly overheads are £20,000.
Your gross profit on each job is £2,000.
You need 10 jobs to break even.
But the 11th job?
That £2,000 gross profit drops straight to net profit.
And so does the 12th.
And the 13th.
That’s how businesses scale without scaling stress.
Too many owners obsess over chasing more sales, bigger numbers, more “top line”…
…but ignore the fact that a big chunk of that revenue disappears in delivery costs.
It’s not what you make...it’s what you keep.
So the question becomes:
➡️ Are you pricing your work properly?
➡️ Are your cost of goods/services eating away your margins?
➡️ Are you tracking gross profit on every product, service, or project you sell?
Because until you do, you’re flying blind.
And when you do dial in your gross profit, everything gets easier:
✅ Cash flow improves
✅ Decision-making becomes clearer
✅ You can reinvest confidently in marketing, people, and systems
✅ You grow profitably, not just bigger
If you want to create a business that pays you well, grows sustainably, and isn’t constantly chasing its tail - start by obsessing over your gross profit margin.
It’s the unsung hero of financial performance.
To smarter, more profitable growth,
James
P.S. If you don’t know your current gross profit margin—or you want to improve it - I’ve got a simple tool I use with clients to calculate and optimise it quickly. Want it? Just drop an email to hello@gainmoresolutions.com and I’ll send it over.