Economically – profitable
Economic profit (or loss) refers to the difference between the total revenues, fewer costs, and the opportunity cost associated with the revenue generated. Opportunity cost is the cost of an opportunity foregone, i.e., given up in order to pursue another one. While economic profit is an excellent way to measure a company’s success, it is not an accurate and complete measure of a company’s profitability. It does not include all important financial aspects and transactions that may occur during a given time frame. The opportunity cost of a business activity not pursued is difficult to estimate accurately. Therefore, it is difficult to accurately estimate economic profit [CFI].
When it comes to building a business it can be hard to distinguish between making money, making a profit, and being profitable. You might start making money as soon as you open your business, but it is good to keep track of your cash flow to see that you’re not losing money on the sale of each good and service when you take into account all the costs associated with the final product. You can make a profit on various items or services if the cost to produce them is less than the revenue from the sale. Finally, there’s profitability. You could be making a profit on the sale of each of your products, but still not cover all the costs of running your business as a whole when you include labor or rent, for example. The moment when your total business income is greater than your total business costs is when it is considered profitable [Square].
What is Economic Profit? CFI. Retrieved from: https://corporatefinanceinstitute.com/resources/economics/economic-profit/
What does it mean to be profitable? Square. Retrieved from: https://squareup.com/us/en/townsquare/what-is-a-profitable-business