Would you like more money? Here’s How…
July 21st, 2016 // 10:08 am @ Scott Manning
Every day you wake up, your goal should be to end the day with more profit in your business than when you started. Profit makes for a healthy business. It brings peace of mind, flexibility and control. It leads to having more autonomy and fewer obligations.
Most people are working to pay the bills and make just enough to earn their desired (or deserved) income. Then they are forced to start all over the next month.
You will, after all, have about the amount of profit you plan to by deliberate orchestration of your business strategy, model, and sales and delivery system.
If your goal is to hit a number each month that just gets you by, then that’s what you are going to do. If, on the other hand, your goal is to maximize every day in your business and create a philosophy of prosperity and profitability then you are going to be assertive, proactive, focused and energetic every day with what you are doing.
This mindset leads to momentum and momentum leads to more growth over and above overhead … and that is the key to all business success.
There is one major way to damage your ability to profit, to suffocate your potential and to end up with less money than you are capable of achieving.
What I’m about to tell you is the single greatest inhibitor to growth of any business and basically just about every entrepreneur makes this mistakes. Those that break free from this in both thinking and operational execution will be amazed at how quickly they discovered hidden windfalls of sustainable profits month after month, again and again.
It is … The idea that you can “save” your way to profitability by reducing expenses (a terrible word) in order to increase profit.
This, by the nature of it, is wrong and the most naïve form of business operation that exists.
People who do not understand or know how to operate a legitimate business focus on expenses. They try to control expenses and in doing so they completely handicapped themselves from their true growth potential – which happens to be where all of the profit is at.
Now, understand the first principle of business is that everything you do should be an investment…
You can’t operate in the dark, therefore your utility bill is not an expense it is an investment. It is not the utility company’s job to make best use of their electricity in your business, it is your responsibility to maximize your earning power and revenue potential in as great amounts as possible with the utilities you are paying.
The same goes for your employees. If you are wasting money on someone it is your fault, no different than owning a piece of equipment that is under utilized. You don’t remove the asset that should be producing you revenue; you enhance, exchange, make it more effective – not eliminate it.
When business owners listen to accountants that don’t know what they are doing, they look only at how much something costs and not how much something should be producing.
As soon as anyone in your life tells you to look at the percentages of your expenses or they ask you to remove certain costs from your budget, you had better run the opposite direction because this person is not a business owner and they have no concept of how to make money and to grow income or profit.
The proper question is to ask how can we better utilize and make more from the investments (expenses) you have in your business.
To be very blunt, most business owners are not making the profit they should be because they are not investing properly or enough in their business to get there.
I use this example all of the time, if you have a million dollar business and you are earning 30% profit on this million – you are making $300,000.
If you want to add $100,000 – you do not say “How can I spend less and get my overhead down to 60%?” Because there are three things that are going to happen…
1. You are going to lose earning potential and make your revenue number some amount less than one million.
2. You are going to ruin the service and the experience you are providing for your customers, clients and patients.
3. You are going to be so focused on the wrong things that you are going to miss the big opportunities.
Instead, the right way to add $100,000 is to say “What can I do to make the $700,000 investment I am making worth more to me?” or “What can I do to get to $1,200,000 and make 50% profit instead of 30% profit?” or “What can I do to make more without increasing overhead at all?” or “If I invest in one or two more people…” or “If I add one more location…” or “If I add a, b, c, what will my earning potential and revenue increase by?”
You grow your business and profit the same way you grow your money – by compounding it. The next $100,000 is both easier and worth more than the previous $100,000. So the fastest way to increase profit is to grow – not shrink.
Humbly speaking, there is no one on earth more adept and calculated about this, like a super hero with x-ray vision into the soul and future of your business, than yours truly.
This is what I do every single day; help business owners realize their potential and identify hidden or under performing opportunities inside of their business.
You will, I promise you, get what you focus on. Focus on expenses and you will get more expenses not more profit.
Focus on making more, being more valuable, creating more, growing and profiting more – dedicated, obsessive, unrelenting focus on this – and you’ll get more of it and besides it will be a whole lot more fun.
If you want more left over at the end of the month, you make a bigger pie (which requires more ingredients, not less).
There is one way to grow a business, in principle, to its potential and that is with abundant, prosperous, profitable thinking, being and doing.
If you are not waking up everyday thinking in this way by asking yourself ‘how can we achieve greater profitability in my business and life’ then that is the first indication why it’s not happening.
Change this and change everything. Awaken your prosperity and profitability first in your approach, beliefs, thinking and then in your tactical execution, strategic growth and principled business model.
There is nothing that makes doing what you do more fun than having more money to show for it and share with those who make the magic happen.
Category : Blog
