Annette Ferguson

Annette Ferguson

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.
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. 💰

Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!

I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!