This might be the most important lesson in business.

Get this wrong and you’ll work harder every year for less money.

Get it right and everything else becomes easier.

And it’s a lesson we learned the hard way.

The simple question is this:

Do you actually know your numbers — and are you really making a profit?

The race to the bottom

In the heat of the moment and the madness of the marketplace, it’s incredibly easy to compete on price.

We once had a competitor who copied everything we did… and just made it cheaper.

So we followed suit. Dropped our prices. Stayed “competitive”.

Then a good friend sat me down and went through the numbers with me.

The uncomfortable truth? We were both losing.

The £60 session illusion

Let me show you how easy it is to lie to yourself in business.

Young Marc, new to business:

• £60 in

• £12.50 instructor cost

• £47.50 profit.

• “This time next year Rodney, we’ll be millionaires.”

Slightly more experienced Marc:

• £60 in

• £10 VAT

• £12.50 instructor

• £37.50 profit.

• Still feeling pretty good.

Reality Marc (not that long ago):

• £60 in

• £10 VAT

• £25 instructor (because they can’t work back-to-back all day and need setup/reset time)

• £5 equipment wear and tear

• £20 profit.

And then comes the version of Marc that really understands business.

The hidden costs that kill you quietly

That £60 session doesn’t just exist in isolation. It sits on top of an entire business.

Costs that don’t show up neatly against a single booking — but absolutely exist.

• Marketing

  • Google Ads, flyers, socials

  • And if you didn’t “pay” for them… who paid for your time?

• Website & booking fees

• Admin time

  • Who answered the enquiry?

  • Who booked the staff member in?

• Pre-site checks

  • Equipment maintenance and safety checks

• On-site manager

  • Not delivering the session, but essential to making the day work

• Employer’s NI

• Pension contributions

• Insurance

• Rent

• Rates

• Energy

• Water

• Accountant

You can see how the list keeps growing.

And then comes tax.

Let’s say — after all that — you’ve made a few pounds net profit per session.

You then:

• Pay 20–25% corporation tax

• Decide whether to reinvest it or take it personally

• And if you take it… you pay tax again

This is why so many business owners are technically “successful”… but personally exhausted and underpaid.

If you add it all up, I’d confidently say most entrepreneurs earn less than minimum wage for the hours and responsibility they carry.

So what do you do?

Here are a few simple but powerful shifts.

Tip 1: Know your daily worth

Decide what you should earn annually for your skills and responsibility.

Divide that by the amount of days you wish to work — that’s your daily worth.

If you’re not charging at least double that for your time and output, profit will always be a struggle.

Tip 2: Be confident with pricing

Most business problems can be eased by charging properly.

Raise prices slowly.

When sales start to noticeably drop — you’ve found the ceiling.

You’re worth what you believe you’re worth.

Tip 3: Turn big bills into daily costs

£36,500 rent isn’t an abstract number.

It’s £100 a day.

Do this with rent, rates, energy, insurance — everything.

Know your daily cost of being open before you even think about profit.

Then add staffing.

Then add margin.

Tip 4: Upsells go straight to the bottom line

Once the customer is there, the big costs are already covered.

That £1 snack or £3 coffee has a disproportionate impact on profit.

There’s a reason Starbucks offer an extra shot so cheaply.

Tip 5: Add perceived value

If price rises feel scary, add value instead.

Think Ryanair priority boarding.

Same plane. Same seat.

But some people happily pay more to feel first, special, or looked after.

Final thought, Sit down and write out everything your business costs.

A bank statement is a great place to start.

Be honest. Not optimistic. Not dreamy.

When you know your numbers — and price for them properly — the business starts working for you instead of the other way around.

You’ll thank yourself later.