UNTIL YOU MAKE A PROFIT, YOU DON’T HAVE A BUSINESS
I have heard it said before that, until you make a SALE you don’t have a business…but…I believe that…on top of that...until you make a PROFIT, you don’t have a business either - you have an expensive hobby.
Years ago, when I wasn’t making a profit, when I was “reinvesting” all the sales revenue in my business, when I was overspending...I was told by a successful entrepreneur that I had an accounting hobby...
I though - what a d**k - what does he know...
Of course, in hindsight (it’s a great thing, right?), he was right...I DID have an accounting hobby since I was not making a profit...
Businesses make money (ie profit).
Hobbies cost money.
It’s that simple to me.
So if you are not making a profit right now (or making a very measly one)...stop everything and assess your spending in your business.
DO NOT LET ANOTHER DAY GO BY WITHOUT YOUR BUSINESS BEING PROFITABLE
And yes, profit is a choice...and you CAN put in place steps to be profitable straight away.
The main thing you need to do is get your spending under control - because right now, if you are not profitable, your spending is not under control.
How do you do that?
💥 Print off all your business bank account and credit card statements for the last 12 months - yes them ALL
💥 Get out a highlighter and red pen
💥 Go through every single transaction and ask yourself - is this expense absolutely 100% necessary to keep the lights on in my business? Could my business operate without this? Be really honest - is it 100% necessary?
When the answer is - yes it’s 100% necessary - then mark it with the highlighter.
💥 Go through every single transaction (again) and ask yourself this second question - am I getting a positive return for this spending? Whether it’s saving or generating money? Or saving time? Is it a return greater than the expense cost?
When the answer is - yes, the return is positive - then circle with your red pen.
💥 Now everything that you haven’t either highlighted or circled...cancel...get rid of...it is not benefiting you and your business. It’s wasted money...stop that spending today.
Most people save A LOT just by doing this exercise...do it...and let me know how you get on in the comments 👇👇
I do this exercise every single quarter in my business and it has stopped my overspending...and is massively powerful in getting you on that profit road. 💰