Are you feeling frustrated because you are not generating enough income? Or maybe, you are wondering why a 6-figure business like yours is still not earning you enough money to take home for the family?
Before you throw in the towel and decide that your business is a failure, hear this out.
Is Your Business A Failure?
Just because your business has managed to survive all these years does not mean it’s successful. However, it does not mean it’s a failure either.
When you put in a lot of effort into building something, pouring blood, sweat, and tears to realize a grand ambition, you expect to be paid off ten-fold towards the end. If not, it’s easy to lose heart and feel like everything you’ve been doing so far is all for nought. You might even reconsider getting a full-time job instead because, well, at least you’ll have a stable income to expect by the end of each month.
Before you label your business failure, you must examine the situation objectively. Ask yourself:
- Are you chasing numbers every month?
- Do you lack customers or clients?
- Are you behind your sales in any way?
If you don’t have a problem selling and yet you’re still not able to take a substantial amount of your profits home, then maybe your business isn’t the problem – it’s the way you manage your finances.
Having been in the same situation myself, I know how frustrating it can be to work relentless hours every day and not feel rewarded enough for it. It’s heartbreaking to look at how much money is going into your business yet not being able to retain much of it. For all your efforts, you would expect things to be different, isn’t that right?
Well, they can be. And here’s how you can do it.
Ever Heard Of The Profit First Method?
Profit First is a formula or methodology Certified Profit First Professionals use to create a system that is sustainable and headed towards long-term success. I talk more about it on this short video, so I’m encouraging you to watch it if you have the time.
Anyway, the goal of the Profit First formula is to help businesses identify critical problems or issues they have with their prevailing financial practices and resolve those so that profit that comes through sales are maximized. Business owners end up with more money to take home to their family or spend on whatever else it is that they are passionate about outside work. After all, the goal of having a business is to generate profits, but the reason to generate profits is for you to live a comfortable life.
The specific term I use to refer to these problems and issues your current financial system may have is “money leaks.” Let me give you an overview of what these are and how you can deal with them.
Money leaks refer to profits turned expenses that don’t contribute to the growth or improvement of your company. It relates to purchases or expenditures your business may be making that are not particularly necessary to the life of your business. This means that whether those expenses happen or not will not directly impact your operational success and will not diminish nor increase profits either.
In other words, money leaks are wasteful uses of money, and they need to be plugged up as soon as possible if you want to see any improvement in your take-home profits. Fortunately, there is a straightforward way to identify these leaks and an even easier way to plug them up. Again, I explain it in more detail in this resource video, so make sure you don’t miss it.
Why Do Money Leaks Happen In The First Place?
When you’re running a business, it can be challenging to remain on top of everything 24/7. This entire situation that you have with money leaks could have been brought about by something as simple as carelessness. You overlooked these expenses. Maybe you thought they were necessary at the time and now they’re not especially doing anything that contributes to the overall success of the company – and yet you might still be paying for them. Instead of adding to the profits that you get to put in your pocket, it washes away wastefully for no good reason.
Regardless of where, when, or how it happened, money leaks need to be identified and resolved. Stopping it precedes backtracking the cause although investigating common causes for money leaks later would also be beneficial for your business. It can help you instate preventative measures so that the same situation will not arise again.
Again, before you denounce your title as a business owner and discredit all the good things about your company because you’re not seeing the results you want at this time, spare some time to discover how a Profit First approach can save your business and improve your profit potential for the long-term.
While it’s all too easy to give up, remind yourself why you’re doing what you’re doing in the first place. It’s crucial that you are passionate about what you do and that you believe and loves the products and services you’re trying to sell. As they say, you cannot convince others if you cannot convince yourself. If you are in a place where you cannot fully invest yourself in what you do, then that’s the only time you should reconsider continuing the business and find something else that you love doing.
Also, never forget to celebrate even the smallest wins. Success doesn’t happen overnight but whenever there are days that you feel like you’ve taken a significant step forward, make it a point to recognize your win. Appreciate how much you’ve done to get to where you are and brace yourself for what’s yet to come. I believe that little things like this make the journey even more worthwhile.
If you have any questions or inquiries about how Profit First works and how you can further improve your take-home pay, get in touch with Annette & Co. through any of our socials. We are practically everywhere, so it’s pretty easy to find us. We’d love to hear from you soon!