Welcome back to the Business Unfiltered podcast with Jeff and Mercer. In this episode we discuss how do you know if your business is profitable? 0:01: Two strategies around profit. 2:45: Strategies for maximizing profit. Strategies to put in place around profit. A lumpy revenue trap. How to get paid twice a month. The main strategy for profit is margins. 7:13: The difference between an agency business and a training business. Two different business models, agency business and training business. The top and bottom line. Cost of goods sold is 25% to 35%. Healthy business margins are important. 11:39: Reinvesting in your business. Reinvesting in the business to prevent burnout. Taking 25% of leftover money. 14:57: The three ways you get paid. Three ways to get paid, salary, profit and book value. 17:52: The difference between a startup and an agency. The importance of having a minimum salary. 19:35: Profit vs. Expense. Expenses are the number one expense in the agency world. How much to invest in growth. 23:34: The importance of retainer consistency. Retainer consistency of revenue is key. Revenue projections are a big part of predicting profitability. Selling a strategy project as a retainer. Selling the retainer as the continuity and ongoing piece. 28:21: How to qualify leads. Qualifying leads and choosing who to work with. Non-negotiable times to be profitable. 33:02: The fruit tree analogy and its value. The fruit tree analogy to the kid analogy. The low-hanging fruit. Holding it to a monthly profit. Final thoughts from Mercer on this topic.