706 - Your P&L Is Lying About Your Margin
Your P&L says you made 60% margin last year. The real number could be half of that, and it is not an accounting error, it is the hours you spend on delivery costed at zero. In this episode, I break down a partner agency I evaluated for acquisition that looked healthy on paper, until we moved the founder's delivery hours out of drawings and into the cost of delivery and watched the net profit collapse. I show you why drawings quietly doing the work of a salary means you are subsidizing your own business and calling that subsidy profit, and the one adjustment that rebuilds your pricing on the truth. If your margin feels fine but your bank keeps raising an eyebrow at your numbers, this is the reality check to run before your next pricing decision.
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