For a business, having healthy profits means that it is earning more revenue than it is spending on operating expenses, such as salaries, rent, and supplies. A profitable business has enough money left over after paying its expenses to invest in its growth, pay dividends to shareholders, and set aside funds for emergencies.

There are different ways to measure profitability, but some common metrics include:

1. Gross profit margin: the percentage of revenue that remains after deducting the cost of goods sold.
2. Net profit margin: the percentage of revenue that remains after deducting all expenses, including taxes and interest.
3. Return on investment (ROI): the ratio of net profit to the amount of capital invested in the business.
4. Earnings per share (EPS): the amount of profit allocated to each outstanding share of the company’s stock.

A business with healthy profits is often seen as successful and attractive to investors, as it indicates that the company is generating value and has the potential for long-term sustainability. However, it’s important to note that profitability alone is not always a sufficient measure of a company’s overall success, as other factors such as market share, customer satisfaction, and employee morale can also impact a company’s overall health and longevity.

Having healthy profits is important for a business for several reasons:

1. Sustainability: A profitable business is more likely to be sustainable in the long term because it has the financial resources to invest in growth, innovation, and new opportunities. It can also weather economic downturns or unexpected expenses.
2. Reinvestment: A business with healthy profits can reinvest its earnings back into the business, whether through capital expenditures, research, and development, or other strategic investments that can improve efficiency, competitiveness, and profitability.
3. Competitive advantage: A profitable business is often more competitive than its less profitable counterparts because it has the resources to invest in marketing, talent acquisition, technology, and other areas that can help it differentiate itself and grow its market share.
4. Stakeholder satisfaction: A profitable business can also satisfy its stakeholders, such as shareholders, employees, customers, and suppliers, by providing returns, job security, quality products and services, and reliable partnerships.
5. Community impact: Finally, a profitable business can have a positive impact on the community by generating tax revenue, creating jobs, and supporting local charities and causes.

Overall, having healthy profits is essential for a business to thrive and fulfill its purpose, whether that’s to provide value to its customers, generate returns for its shareholders, or make a positive impact on society.

Healthy profits can support sustainability and regenerative efforts in the world in several ways:

1. Investment in sustainable practices: A profitable business can invest in sustainable practices, such as reducing waste, conserving resources, and using renewable energy sources, which can reduce its environmental footprint and contribute to a more regenerative economy.
2. Research and development: A business with healthy profits can invest in research and development to find innovative solutions that can address environmental challenges, such as developing new technologies, materials, or business models that can promote sustainability and circularity.
3. Partnerships and collaborations: A profitable business can also form partnerships and collaborations with other organizations, including NGOs, governments, and other businesses, to pool resources, share knowledge, and scale up impact. This can lead to more regenerative and sustainable practices across the value chain.
4. Philanthropy and impact investing: A business with healthy profits can also support sustainability and regenerative efforts through philanthropy and impact investing. This can include donating to environmental causes or investing in startups and organizations that focus on sustainability and regeneration.

By leveraging their profits and resources, businesses can play a critical role in advancing sustainability and regenerative efforts in the world. By doing so, they can not only contribute to a more resilient and healthy planet but also build long-term value for their stakeholders and the communities they serve. For these reasons and so many more we at TAG (The Abundance Games) choose to focus our efforts on developing leaders in regenerative businesses to give you the edge, you need to make a difference on the planet.