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Most small business owners think they understand profit. But in practice, profit is one of the most misunderstood numbers in business — and misunderstanding it leads to bad decisions, cash stress, and fragile growth. In this video, we break down what profit actually means in a small business, why it’s often confused with cash or bank balance, and when profit is useful versus misleading. This video is part of a broader series on understanding whether your business is truly making money — not just surviving on activity. If you haven’t watched the main hub video yet, start there first. It explains the full framework this video builds on. Chapters: 00:00 – Why “profit” causes so much confusion 01:05 – What most people think profit means 02:18 – The accounting definition vs business reality 03:40 – Why profit ≠ cash 05:02 – When profit is helpful 06:18 – When profit becomes misleading 07:32 – The hidden risk most owners miss 08:45 – How this connects to cash flow 09:55 – What to look at next