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It's not just "semantics": We're talking about an order of magnitude difference, and revenue is not the same as earnings.

> getting someone to give you that much money for something you are selling is a lot harder than most people realize

Absolutely, I agree! But the value of a business – which you were talking about – isn't determined by its revenue alone. In fact, earnings and earnings growth determine the value of a business a lot more than revenue.

Even for a "mom and pop" business – especially for a mom and pop business – earnings are much more important than total revenue.



Apologies for the snark but my original comment was intended to say "profit of 1 million a year"; my shorthand of "generate" inadvertently created some shade of gray and I might have been well served to simply clarify.

Then I thought about it and said to thyself, "actually, a million is a lot either way." I've actually founded two companies that grossed over a million in a year (one at about 40% gross, 5% net and one closer to 75/65) and both times have required a whole lot of work.

So my fault for being vague, not intended.




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