Growing revenue but still feeling broke or burned out? Kelli Wise shares how to stop chasing bigger months and start building sustainable, predictable profit that actually pays you.
487: The Simplest Way to Create Sustainable Profit (Without Chasing More Revenue) with Kelli Wise
Kelli Wise is on a mission to help coaches, course creators & online businesses take the fear & frustration out of their finances. Her website is Profit Positive.
She offers DIY tools to make the most of each tool to increase your clarity, confidence, and accuracy with your numbers. She is also available for Strategic Bookkeeping with CFO Support.
How Do You Define Sustainable Profit?
Kelli explains that before talking about sustainable profit, it is important to start with the basic definition of profit itself.
Profit is simply revenue minus expenses. Most business owners understand that concept, but the challenge arises when entrepreneurs focus almost entirely on revenue rather than the profit that actually ends up in their pocket.
Many business owners find themselves chasing higher revenue numbers, running faster and working harder to increase sales. Kelli describes this as being stuck on a revenue treadmill.
When the focus stays on revenue alone, entrepreneurs may see bigger numbers coming in but realize they are not actually taking home more money. Instead of chasing revenue first, she encourages business owners to focus on the profit they want to create and then reverse engineer the revenue required to reach that goal.
Sustainable profit, in her view, happens when profit is planned intentionally rather than treated as whatever remains at the end of the month. It becomes something a business owner can count on consistently without burning out.
Planning profit in advance creates a structure where revenue and expenses are designed to support the desired outcome.
Kelli also emphasizes that sustainable profit looks different depending on the season a business owner is in.
Some entrepreneurs are in a season of growth, where increasing revenue is the primary focus. Others may be in a season of maintenance, where they have reached a comfortable level and simply want to sustain it.
There are also times of restructuring, when businesses are pivoting or adjusting after a difficult period. She notes that many businesses experienced challenges in 2025 and are currently navigating that restructuring phase.
According to Kelli, the online business world often promotes the idea that growth should always be the goal. However, she believes it is perfectly valid for business owners to remain in maintenance mode or to focus on rebuilding when necessary.
Sustainable profit comes from recognizing the current season of business and defining what level of profit actually fits the life and goals of the business owner.
To make the concept easier to remember, Kelli uses the acronym TIP. As a former teacher, she values memory tools that help people put ideas into practice.
- T – The T represents time. Business owners need to be clear about how much time and energy they truly want to invest in their business. Increasing revenue often requires more time and effort, so defining those limits helps prevent burnout.
- I – The I represents intention. Sustainable profit comes from thoughtful planning rather than waiting to see what is left at the end of the month. Intentionally designing revenue and expenses around profit creates clarity and control.
- P – When time and intention are aligned, they lead to the P in the acronym, which stands for predictability. Time plus intention creates predictable profit.
Even in businesses where revenue fluctuates from month to month, patterns and averages can be used to anticipate what is coming. With a clear plan in place, profit becomes far more consistent and manageable.
Business owners may not hit their target perfectly every month, but they will come much closer to their goals than if they simply hope the numbers work out at the end.
Jenny agrees with this approach, especially the idea that business owners do not always need to be focused on constant growth.
She often talks about reverse engineering when building products, pricing offers, and creating marketing funnels. Starting with the desired outcome and working backward helps entrepreneurs create systems that support both their business goals and their personal lives.
At What Point Does Chasing Revenue Actually Hurt Profitability?
Kelli explains that many entrepreneurs naturally assume that the more revenue they generate, the more profit they will make. However, that assumption overlooks the other side of the equation.
Profit is calculated by subtracting expenses from revenue, and when expenses rise alongside revenue, profitability can quickly disappear.
Revenue begins to hurt profitability when the effort to increase sales also leads to an increase in spending. This happens very easily in business.
While expenses are often necessary and investing in the business is important, those investments need to be intentional and carefully planned.
Kelli describes how many entrepreneurs unknowingly put themselves on what she calls a revenue treadmill. As they work harder to increase revenue, they often add expenses right behind it.
It is like increasing the speed and incline on a treadmill while the expenses are climbing right alongside. Before long, those costs catch up to the revenue without the business owner realizing it.
When entrepreneurs focus only on bringing in more money, they often miss how quickly expenses are growing at the same time. They might believe the solution is simply to work harder or generate more revenue, but this approach can lead to burnout.
Many business owners eventually feel exhausted and financially strained because, despite working more, they have little to show for it.
These rising expenses often appear in small but frequent decisions.
A new tool seems necessary. A new opportunity presents itself. A competitor appears to be doing something that feels important to replicate. In those moments, business owners can become reactive rather than strategic.
Without intentional planning, these decisions accumulate and slowly reduce profitability.
Kelli emphasizes that it is entirely possible to generate less revenue while actually earning more profit if spending is approached thoughtfully.
By paying close attention to expenses and creating intentional margin within the business, entrepreneurs can avoid the trap of chasing revenue while unknowingly sacrificing profitability.
Jenny adds that she often sees this pattern when business owners begin hiring team members or investing heavily in marketing without a clear strategy.
Jenny once hired someone to manage Facebook ads while also paying for the ad spend itself. The campaign did not reach the right audience, which resulted in a significant loss. She also notices many clients asking whether they should run ads, when in reality they are simply boosting posts without a clear marketing plan or revenue strategy behind it.
These kinds of decisions can quickly increase expenses without delivering meaningful results. That is why Jenny appreciates Kelli’s emphasis on intentional spending and strategic planning.
By focusing on sustainability instead of simply increasing revenue, business owners can create a financial model that actually supports long term success.
What Are the First Indicators That Someone’s Business Model Isn’t Sustainable?
Kelli often compares diagnosing an unsustainable business model to visiting a doctor with symptoms. Just like a doctor looks beyond the headache or sore throat to identify the root cause, business owners need to pay attention to the warning signs that something deeper may be off in their business model.
One of the most common indicators is when someone feels like they are working more and working harder, but the money left in their bank account does not reflect that level of effort.
If the amount someone is taking home is not increasing despite putting in more time and energy, that is a strong sign that the model may not be sustainable and that recalibration is needed.
Another warning sign appears in how expenses are handled. If business owners are spending money without clear strategy, simply reacting to what they believe they should be doing, that can create problems.
For example, someone may believe they need to invest more in visibility and decide to spend heavily on advertising.
While marketing investment can absolutely be important, simply spending money on marketing without a strategic plan for how it will generate revenue often does not lead to the results they are hoping for.
Kelli encourages business owners to step back and evaluate whether their spending decisions actually align with the structure of their business model.
Are those investments bringing measurable results? Do they support the long term goals of the business? If the answer is unclear, it may be time to take a closer look at the numbers and determine what adjustments need to be made.
She also reminds entrepreneurs that there should be no shame in recognizing these issues. Every business owner has made investments they later realized were not the best decision. That is a normal part of learning and building a business.
The key is shifting from being reactive to becoming more proactive about how money is spent.
Having a clear structure in place can make a huge difference. When business owners understand what types of expenses are appropriate for their model and how much should be allocated to each area, it becomes much easier to maintain sustainability.
Many people start businesses without knowing exactly what healthy spending levels look like. Once that clarity is established, financial decision making becomes far more confident and strategic.
Jenny agrees and adds that this is one of the reasons she emphasizes creating and sticking to a ninety day plan. When a plan is in place, it becomes easier to avoid reactive spending decisions such as hiring a new team member or investing in a new tool that was never part of the strategy.
Without a plan, it is easy to start throwing money at problems in the hope that something will work. With a clear plan, spending becomes intentional and aligned with the overall direction of the business.
If Someone Wants to Improve Profit Without Increasing Workload, Where Should They Start?
Kelli says the very first place to start is with bookkeeping. If bookkeeping is not already in place, it becomes a non negotiable step.
While many business owners think of bookkeeping as something that only exists for tax compliance, she views it as one of the most powerful strategic tools available to a business owner.
Without accurate financial records, entrepreneurs are essentially flying blind. When bookkeeping is done consistently, the numbers reveal valuable insights that can guide smarter business decisions.
Instead of viewing bookkeeping as a tedious obligation, Kelli encourages business owners to see it as a way to gain clarity and control over their financial outcomes.
Once bookkeeping is established, the next step is to use those numbers more strategically. Many business owners look only at the top line revenue, the total expenses, and the final profit number. Kelli recommends going deeper and using the data to understand exactly where money is going.
One tool she uses with her clients is something she calls a fifteen minute profit pulse. This quick exercise allows business owners to review their profit and loss statement and gain meaningful insight without adding more work to their schedule.
The process starts by looking at the most recent month’s profit and loss report. While it is helpful to see total revenue and total expenses, the real insight comes from organizing expenses into clear categories. Many profit and loss statements contain long lists of individual expenses that can feel overwhelming and difficult to interpret.
Kelli recommends grouping expenses into five main buckets. For online business owners, these categories provide a clear picture of how money is being allocated.
- The first bucket is owner compensation, which applies if the owner is on payroll and receiving wages from the business.
- The second bucket is team, which includes all expenses related to employees and contractors.
- The third bucket is marketing.
- The fourth bucket is business health. This includes professional development such as coaching, masterminds, training programs, as well as professional services like legal support, tax professionals, bookkeeping, or CFO services.
- The final bucket is operations and delivery, which includes everything required to run and deliver the business.
Once expenses are grouped into these buckets, each category can be converted into a percentage of total revenue. This simple step makes it much easier to see where spending may be too high or too low.
For example, if a business spends two thousand dollars on marketing during a ten thousand dollar revenue month, that represents twenty percent of revenue. According to Kelli, that level of marketing spend is typically aggressive and may only make sense during a growth phase.
Seeing expenses this way allows business owners to quickly identify whether spending levels are sustainable.
Team expenses, for example, are often the largest category. While having team support is valuable, hiring too quickly can contribute to financial strain if revenue does not support it.
Interestingly, this process can also reveal areas where a business may actually be underspending. If a business owner is feeling burned out but the team expense category is significantly lower than healthy benchmarks, that could indicate that hiring support might actually improve both sustainability and profitability.
By organizing financial data into these buckets and reviewing them regularly, business owners gain immediate clarity about how their revenue is being distributed. Even a small adjustment in one category can create meaningful improvements in overall profitability.
Jenny then raises a question she knows many listeners will have. For business owners who are not running payroll for themselves and are instead operating as sole proprietors or independent contractors, how does compensation work?
Kelli explains that in those cases, the owner’s take home pay comes directly from profit. That is why planning for profit becomes even more important. Business owners must also remember that taxes need to come out of that profit as well.
Many people mistakenly assume that if their business generates ten thousand dollars in profit, that entire amount is available for personal income. In reality, a portion must be set aside for taxes.
Kelli recommends starting with a general guideline of setting aside at least twenty five percent for income taxes, though business owners should always consult with their CPA for personalized guidance.
Unlike W-2 employees whose taxes are automatically withheld, business owners must develop the habit of planning for taxes themselves. For sole proprietors especially, every dollar of personal income comes from profit.
That makes it essential to reverse engineer revenue and expenses carefully so the final profit supports both tax obligations and the owner’s take home income.
If Someone Wants to Improve Profit in the Next 90 Days, What Are the Three Simplest Actions They Can Take?
Kelli recommends starting with the fifteen minute profit pulse.
This begins by reviewing the most recent profit and loss statement and sorting all expenses into the five buckets she described earlier. Once the expenses are organized, each bucket is converted into a percentage of total revenue.
Seeing the numbers this way makes it much easier to identify where money may be overspent or underspent.
From there, the goal is not to overhaul everything at once but to choose one or two areas to adjust. Even small changes can quickly improve profitability and make the results visible within a short period of time.
The second step is to look for something easy to cut if overspending appears in the numbers.
In many cases, the simplest place to start is with tools, subscriptions, memberships, or other recurring expenses that once seemed like a good investment but are no longer being used.
These monthly charges often continue quietly in the background and slowly reduce profit over time. Canceling or consolidating a few of these expenses can immediately create more margin in the business.
The third step involves examining whether the business might actually be underspending in certain areas, particularly when it comes to team support.
Many business owners try to handle everything themselves, which can lead to burnout and overwhelm. If the numbers show that team expenses are lower than what would normally support a healthy business model, that may indicate an opportunity to hire part time help.
Bringing in a virtual assistant or contractor for tasks that can easily be delegated can free up the business owner’s time to focus on revenue generating activities. In the long run, that shift can increase both sustainability and overall profit.
Predictable Pay Days Guide
Many business owners experience inconsistent revenue, which makes it difficult to know how much they can reliably pay themselves each month. Kelli has created The Predictable Pay Days Guide includes a simple calculator designed to help smooth out those fluctuations and create more predictable income.
Instead of a complicated spreadsheet, this calculator is designed to be easy to use and visually simple.
How it works
- Enter your numbers only in the white cells in the Google Sheet.
- The calculator will automatically determine your:
- Average monthly revenue
- Average monthly expenses
- Average monthly profit
By averaging higher and lower months, you can see a more realistic picture of what your business typically generates.
Why this matters
Seeing these averages allows you to understand:
- The level of profit you can reasonably expect if your business stays at its current pace
- How potential revenue increases could impact profit
For example, if your average monthly revenue is currently $10,000, you can adjust the calculator to see what happens if revenue increases to $15,000 while expenses remain similar.
Planning your profit
Another important feature of the calculator is the section that helps you plan how your profit will be used. Profit is not just what you take home.
Your profit may need to be divided into several categories such as:
- Owner pay
- Income taxes
- Business reinvestment
- Debt repayment
- Savings or emergency reserves
- Special business goals such as travel or events
For example, if your business generates $5,000 in profit, the calculator helps you plan how much goes to each category. Bonus – A short walkthrough video is included to explain exactly how to use the calculator so you can get started quickly and confidently.
