Non Liquid Profits

You purchase 100 units at a cost of $1 per unit for a total of $100.

You sell 50 of these units at a price of $2 per unit for a total of $100.

Since you have now covered the costs of all 100 units, you can think of these remaining 50 units as non liquid profits. Anything you sell those remaining 50 units for can be considered profit (not counting costs involved in selling etc).

Once you have sold enough to cover your costs it’s easy to get complacent because…you have broken even and have non liquid profits.

The reality is that non liquid profits don’t pay your rent, they don’t put food on the table, they don’t cover pay roll.

Maximizing your non liquid profits, turning them into the liquid profits is where your organization becomes successful.

Just a thought.

Have a great day!

Lawrence

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