16/08/2026
You hear a business owner say:
“We made ₹1 crore in revenue!”
But does that mean they made ₹1 crore in profit? Not at all.
Let's understand the difference using a simple tea stall example. ☕
Imagine selling 500 cups of tea at ₹20 each:
500 × ₹20 = ₹10,000 Revenue
But that's not your profit.
You still have to pay for things like:
🥛 Milk
🍃 Tea leaves
🍚 Sugar
🥤 Cups
🏪 Rent
💡 Electricity
…and other business expenses.
After subtracting your variable costs and fixed costs, whatever is left is your profit.
Remember:
Revenue = Money generated from sales
Profit = Revenue − Costs
That's why a business can have crores in revenue and still make a loss.
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