When Profit Lies / by Alexander Lyadov

Profit margins are a great metric, but sometimes they lie.

Imagine an entrepreneur sketching a new business idea on a napkin in a café for a potential partner. At this stage, there’s no profit, no revenue, no team, no structure—nothing.

Now, compare that to a solid company, maybe even a market leader. Sophisticated processes, offices worldwide, thousands of employees—and profits so massive they barely fit in the annual report.

Metaphorically, the first case is like a seed planted in rich black soil. The second? A tree stump covered in mushrooms. Outwardly, the stump looks alive and thriving, but inside, it’s dead.

Of course, not every new project will survive. And sometimes, even a large organization can reinvent itself. But that’s not the point here.

Pay attention to the source of life.

A lush appearance shouldn’t blind you to a hollow core. And on the flip side, don’t rush to dismiss what seems insignificant. “Nothing” might just surprise you.

Sincerely yours,

-Alexander


About me:
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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