Profitability is Key to Sustainability

Sustainable business IS profitable.

Let’s start with simple explanations of 2 key concepts with 7 words each.

PROFIT: calculation of total revenue less total expenses.

SUSTAINABILITY: The ability to continue operations perpetually.

In order to continue operations, businesses need to collect more than they spend. Each business has a unique pattern to the sources, timing, and size of their cash flows.  Profitability can sometimes be reached in months or decades. 

Regardless of the complexity of their processes, the basic equation still holds true, and I believe every business leader has the opportunity to pursue growth and profitability!

Pursue is categorically different than ‘pursue at all costs’ as well as ‘pursue ONLY profits’. 

The latter thinking builds cultures and norms based on short-term thinking that actively sabotages the business from the inside-out.  

It breeds opportunities to exploit resources of people, communities, and the planet rather than empowering and benefitting everyone who is affected. 

Decisions about designing your business are not about being sustainable OR profitable. They are ultimately about designing a business that is SUSTAINABLY PROFITABLE from every angle.