Definition
Gross profit is the revenue minus the direct costs of producing goods or services. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Gross profit. Once they agree it means “Revenue minus the direct costs of producing goods or services”, the argument becomes a decision.
Common mistake
Using Gross profit as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Gross domestic product (GDP)
Total value of goods and services produced within a country's borders in a year.
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Gross Margin
Percentage of revenue remaining after deducting the cost of goods sold.
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Gross revenue
Total income generated by a business before deducting any expenses or costs.
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Greenwashing
Misleading marketing that presents a company as more environmentally friendly than it actually is.
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