If you’ve spent any time on LinkedIn or Instagram, you’ve probably seen the posts. “We just hit $100,000 in sales!” “Our best month ever!” “Revenue is up 300%!” And every time I read one, I’m genuinely happy for them. Growing a business is hard. Every milestone deserves to be celebrated. But I’ve also learned something those posts rarely tell you. Revenue is one of the most misunderstood numbers in business.
The Number Everyone Celebrates
Revenue is exciting because it’s easy to understand. Sell more. Make more. Grow faster. Simple. Except… It isn’t. You can double your revenue… And actually become less profitable. You can have your biggest sales month ever… And your bank account can still make you nervous. That sounds impossible until you’ve actually lived it.
Nobody Sees the Other Side of the Invoice
Someone buys a pack of jigheads. They see the price. They assume the company made money. What they don’t see is the line of people waiting to get paid before you do. The credit card processor. The shipping carrier. The packaging supplier. The advertising platform. The software subscriptions. The insurance company. The accountant. The sales rep. The taxes.
Every dollar that comes in already has a list of people waiting to take their share. Some months it feels like I’m the last one in line.
The Business Gets Hungrier
Here’s something I never appreciated before starting a company. Businesses develop an appetite. The bigger they become… The more they consume. More sales mean more inventory. More inventory means more cash tied up. More customers mean more support. More products mean more complexity. More growth means more decisions. Success doesn’t necessarily make life easier. Sometimes it just creates bigger problems.
The Trap of Chasing Big Numbers
It’s easy to fall in love with revenue. It feels like progress. It looks impressive. It gives you something to post online. But revenue can also become a distraction. I’ve seen businesses chase sales that didn’t improve the company. Bigger orders with thinner margins. More customers with less profit. More work with less reward. Growth for the sake of growth isn’t always growth. Sometimes it’s just motion.
The Metric I Care About More
These days, I’m less interested in asking, “How much did we sell?” I’m more interested in asking, “Did the business get stronger?” Did we earn repeat customers? Did we improve the product? Did we solve a problem? Did we make better decisions? Did we create a little more stability than we had last month? Those answers tell me far more than a revenue number ever could.
What Building a Business Really Looks Like
Most people picture entrepreneurship as freedom. Some days it is. Other days it’s spreadsheets. Purchase orders. Inventory forecasts. Cash flow planning. Late-night decisions about what gets paid today and what can wait until next week. Nobody posts those screenshots. But that’s where businesses are actually built. Not in the highlight reel. In the ordinary decisions nobody else ever sees.
My Definition of Winning Has Changed
When I started, I thought success meant selling more. Now I think success means building something healthier. A business that can weather slow seasons. A business that doesn’t panic every time an unexpected expense shows up. A business that earns trust instead of chasing hype. That’s not as flashy. But I think it’s a lot more sustainable.
One Last Cast…
Revenue is important. Without sales, there is no business. But don’t confuse movement with momentum. Don’t confuse growth with strength. And don’t let someone else’s revenue post convince you they’ve figured everything out. Behind every successful company is a side of the story you rarely see. The bills. The risks. The reinvestment. The sleepless nights. The decisions nobody applauds.
Those things don’t show up on a revenue chart. But they’re usually the reason the company is still around a few years later. Because in business… Revenue gets the applause. Good decisions earn the encore.
Until next cast...
- Dave Erdly
Founder, Ebb N Flow Outdoors