21/09/2025
The truth about profit vs revenue in fashion
One thing I have noticed in this fashion business is that many designers confuse revenue with profit. And because of that, they think they are doing well, but in reality, they are just running in circles. Let me break it down in a simple way.
1. Revenue
This is the total money that enters your hand from your customers. For example, if you sew ten outfits at 20,000 each, your revenue is 200,000. That is just the money that came in.
2. Profit
Profit is not the same thing as revenue. Profit is what remains after you remove all your expenses. Expenses include fabric, lining, thread, zips, electricity, transport, even the pure water you drank while working. If after sewing those ten outfits you spent 120,000 on expenses, then your actual profit is 80,000.
This is the part where many tailors deceive themselves. They look at revenue and say “I made 200,000 this month” but in reality, their profit is far less than that.
3. Why this matters
If you only focus on revenue, you will keep wondering why you are always broke despite having plenty of customers. But if you focus on profit, you will start paying attention to how much is going out, not just how much is coming in.
4. What to do as a fashion entrepreneur
• Always write down your expenses.
• Track every single thing you buy for the business.
• Don’t price your work based only on what others are charging. Calculate your cost, then add your profit margin.
• Review your business monthly to know if you are actually growing or just turning over money.
The truth is this: Revenue will impress you but profit will sustain you. A business that earns 1 million in revenue and spends 950,000 in expenses is not as healthy as a business that earns 300,000 in revenue but keeps 150,000 as profit.
Fashion is not just about sewing. It is about knowing your numbers and understanding what keeps you in business.