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The speaker describes a meeting with a potential client, a realtor in a $100,000 Mercedes, who is seeking financing after being rejected by five banks. The speaker looks at the client's profit and loss statement and gets emotional. The video aims to show viewers how to create a profit and loss statement, explaining its importance and providing a template. A profit and loss statement is described as gross sales minus costs and fixed expenses over a period (monthly, quarterly, or annually). The importance of profit and loss statements is outlined in the video.