The goal of every for-profit business is to create and deliver value
for customers while returning a profit. No business will survive for
long if it operates at a loss
At the most basic level, profit is the difference between the cost
you incur to create value (the left side of the canvas) and the
revenue you receive from your customers as payment for that
value (the right side of the canvas).*
Costs can include fixed costs—such as rent or salaries—that remain
the same regardless of how much business you do and variable costs
—such as raw materials or shipping.
Revenues will come from a variety of different sources and
different customer types depending on your business. These can
include anything from simply selling a product or service to licensing
agreements, subscriptions and commissions.
*Calculating profit can get more technical than this simple formula. For an overview, checkour Finance Basics guide.