Ep767: Andrew Stotz – Why Increasing Your Business Profits Should Be Your #1 Goal in 2026

By Andrew Stotz | 01/18/2024 |

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Let’s be honest—every business owner wants to make more money. But increasing profit isn’t just about lining pockets. It’s about survival, growth, and impact.

Without profit, any business will eventually die. Your obligation as a founder, owner, leader, or director is to ensure that profitability stays strong and sustainable.

So here’s the challenge:

👉 Set a clear goal for 2026 to increase the profits of your business.

Whether by 5%, 20%, or 100%, intentional profit growth creates a ripple effect that strengthens every part of your organization.

Why is increasing profit so important? Because profitable businesses have options. Struggling businesses don’t.

Eight Key Benefits of Increasing Business Profits

1. Reinvestment and Growth

Higher profits give you the fuel you need to reinvest in the areas that matter:

research and development
operational improvements
infrastructure upgrades
inventory expansion

This reinvestment drives innovation and ensures long-term sustainability. For example, reinvesting in research and development may allow you to create new products or improve existing ones, keeping your offering relevant in a fast-changing market.

Investing in infrastructure—such as better systems, logistics, or automation—can reduce costs and increase productivity over time.

Businesses that don’t reinvest fall behind. Competitors innovate, markets shift, and customer expectations evolve. Profit gives you the fuel to stay ahead.

2. Attracting Investment

Investors and lenders look for one thing above all: proof that your business model works.

A profitable business sends a clear signal that its business model works. This increases confidence among banks, venture capitalists, private equity firms, and strategic partners.

Strong profitability signals:

financial health
operational efficiency
scalability

When you’re able to prove that your business model works, you increase your chances of accessing bank financing, venture capital, private equity, and strategic partnerships. This means you can accelerate growth without relying solely on internal cash flow. Investors want to support companies that already show momentum—not those struggling to survive.

Simply put, profit makes people want to give you money.

3. Competitive Advantage

When profits increase, so does strategic flexibility. When you have healthy margins, you can reinvest in ways that make your brand more appealing and harder to compete with.

For example, you might choose to:

lower your prices to attract more customers
increase marketing and brand visibility
improve product quality or packaging
offer faster delivery or better service

Each of these strategies strengthens your position in the marketplace.

A company operating with thin or negative margins has no flexibility. Every decision becomes risky. But a profitable business can take calculated risks, experiment, and innovate—while competitors are simply trying to stay afloat.

4. Market Expansion

Once profitability stabilizes, new opportunities become accessible. Higher profits allow you to explore:

expanding into new regions
opening additional locations
launching new product lines
acquiring smaller competitors
forming distribution partnerships

Market expansion increases brand awareness and customer reach, which boosts both revenue and influence within your industry. Instead of being confined to a single audience, a profitable business can grow into new markets and secure long-term dominance.

5. Employee Satisfaction

People are the engine of every business. Profit enables you to reward the team that drives your success through:

competitive salaries
performance bonuses
health benefits
training and development programs
career advancement opportunities

Employees who feel valued work harder, stay longer, and speak positively about your business. This improves retention and reduces the cost of hiring and onboarding new staff. Top talent is drawn to organizations that take care of their people.

Profit helps you become an employer of choice rather than a stepping stone.

6. Risk Reduction

Business environments are unpredictable. Economic downturns, supply chain disruptions, changing regulations, and unexpected crises can threaten even the strongest companies. When profits are consistently reinvested to build financial reserves, your business becomes more resilient.

Having a cash buffer allows you to:

survive difficult periods without panic decisions
avoid high-interest emergency loans
maintain payroll and operations
seize opportunities when competitors are struggling

Many businesses fail not because their idea is bad, but because they run out of cash during a downturn. Profit acts as insurance against uncertainty.

7. Social Impact

A profitable business can contribute beyond its own walls. With more financial resources, you can:

support local charities
fund community projects
adopt sustainable practices
sponsor educational or youth programs
provide meaningful volunteer opportunities for employees

This strengthens your reputation and builds goodwill within the community. Customers increasingly prefer to support companies that demonstrate social responsibility.

Profit allows you to create meaningful impact—not just survive.

8. Personal Rewards

Let’s acknowledge a simple truth: You started your business to create a better life for yourself and your loved ones.

Higher profits make that possible by providing:

increased dividends or owner compensation
improved lifestyle choices
stronger retirement planning
the ability to invest in other ventures
financial independence

Profit rewards the years of effort, sacrifice, and risk you’ve invested. It gives you personal freedom and security, which ultimately supports better decision-making within the business.

Final Thought

Profit isn’t selfish. Profit is fuel.

It strengthens your business, supports your team, benefits your community, and gives you the freedom to innovate and grow. This means: More reinvestment, more stability, more opportunity, more impact.

Now is the time to set your profit goal for 2026—and commit to achieving it.

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About the show & host, Andrew Stotz

Welcome to My Worst Investment Ever podcast hosted by Your Worst Podcast Host, Andrew Stotz, where you will hear stories of loss to keep you winning. In our community, we know that to win in investing you must take the risk, but to win big, you’ve got to reduce it.

Your Worst Podcast Host, Andrew Stotz, Ph.D., CFA, is also the CEO of A. Stotz Investment Research and A. Stotz Academy, which helps people create, grow, measure, and protect their wealth.