There’s more to running a business than only profit.
There’s also passion and purpose.
But how much attention do you pay to the profit part of your business?
How often do you look at the numbers in your business?
For many small business owners, dealing with the financial side of the business can feel overwhelming.
And frankly, some business owners simply ignore the financial stability of their businesses and focus only on the work that they are passionate about.
I get it, numbers can be scary especially if you don’t have a business background or see yourself as mathematically challenged.
Don’t get me wrong, by talking about profit I’m not saying the amount of money you earn determines how successful you are. You get to decide what is ‘enough’ for you and your business.
This is my favorite quote about success: “Success is liking yourself, liking what you do, and liking how you do it.” Maya Angelou
What I am saying is that if you aren’t earning what you want to earn, it’s probably time to take a deeper look into the financial side of your business.
The theme of the 2017 SPARK Conference was: Passion, Purpose, Profitability and Femke Hogema was one of the speakers. Her talk was called, Profit First. Which also happens to be the name of a book, and a concept for which she is certified to teach.
The big idea from this book is to look at profit first, before you look at expenses. The formula we all know is Sales – Expenses = Profit. The Profit First concept shifts the formula to Sales – Profit = Expenses. Find out more in this summary pdf.
“What you focus on grows, what you think about expands, and what you dwell upon determines your destiny.” Robin Sharma Click to Tweet
In addition to the hard numbers and accounting side of your business, there are also additional ways to tend to your profit garden. Here are three ways to take control of the profitability of your business.
3 Ways to Be More Profitable
1. Explore Your Business Model
Your Business Model is the foundation of your business and if it isn’t solid, you’re business is going to struggle.
When I talk about your Business Model, I mean simply how your business makes money. All of the revenue streams you have, how much you sell in each stream, and at what price do you sell in each one.
You can calculate it with a pencil and a calculator or use an Excel spreadsheet. The bottom line is that it does not have to be complicated.
So revisit your Business Model and make sure that it is designed to deliver the results you’re looking for.
For more on this check out my posts: Is Your Business Model Healthy, What Every Small Business Owner Needs to Know About Business Models, and How to Know What Your Most Profitable Revenue Stream Is.
2. Examine Your Pricing
The topic of pricing sends most small business owners off the deep end.
In addition to what to charge, you also need to look at what you’re giving away for free (it’s good to give some stuff away, just not all of it), when the last time you raised your prices, and how to be transparent with your pricing.
Know it’s time to raise your prices? Check out: The Only Three Ways to Increase Business.
And if you’re wondering whether or not you should put your prices on your website, take a look at: Why You Shouldn’t Be Afraid to Show Your Prices on Your Website.
3. Focus on Your Most Effective Marketing Strategies
The only way to know which marketing strategies to focus on is to know which ones work the best for you.
To know that, you have to pay attention and measure what’s effective.
For more on this read my post: How to Stop Wasting Time & Money on Your Marketing.
I hope you’re feeling inspired to take action and increase your knowledge of your business numbers. It’s really not that scary.
Decide that you will take one action, pick the one that feels the most exciting and do it. After that, choose another one. Action creates momentum.
Give the profitability of your business the attention it deserves and you will reap the rewards.
© Stephanie Ward
WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER, BLOG OR WEBSITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to create meaningful and prosperous businesses. Grab your FREE copy of the special report ’7 Steps to Attract More Clients in Less Time’ plus business building tips, at: https://www.fireflycoaching.com.
How do you manage the profitability of your business? Share your thoughts and questions in the comments section below. I respond to every single comment.