Explain the difference between profit and profitability and why this difference is important in business?

Profit is what you made after the costs of material for a product or labor for a service. Could be you sold a product or service. Profitability is what you could make. Is that there is a need that needs to be filled or replaced and you can make money doing it.

The difference is very important when your planning out location of business, target market, labor any expenses that go into the product or service Or even what your company wants to provide.
A business that is not making profit will eventually run out of money and go out of business.