What is just as important to your business, as food is to your body?
What is it that if your business doesn’t have enough, you will not be able to hire great team members, invest in the latest technology, get financing, nor survive difficult economic times?
I am talking about an awesome 6 letter word that a great number of the ‘miss-informed’ con-sider to be a 4 letter word. The word is ‘profit’.
I understand why so many have an issue with profit, it’s because they really don’t understand that without it, the world that they have built their lives around would come to a dead stop. Many countries have tried other forms of more altruistic economics, and none have had any-where close to level of success as capitalism, even with all its warts and imperfections.
Without profit there would be no electricity, no food in the stores, and no transportation (private or public). The world runs on profit and it is the main funding source for all charities & non-profits.
The percentage of profit plays a significant role in how fast and far a company grows. If a busi-ness does not make enough profit it will not be able to withstand a growing competitive world. Profit, pure and simple means survival.
It is also provides an opportunity to take better care of all your team members and their families according to their present and future expectations.
When you look around at most small businesses today, what you really see are glorified owner-employees who are trapped, and many times, in gilded cages. Like a higher class of sharecrop-pers they make only enough to survive at a little higher level than the general population, but to not really thrive. They and their businesses are totally dependent on them being healthy enough to serve their businesses each and every day. The two key reasons for this are:
They haven’t run their company like a true business with enough profit to make a differ-ence, preventing them from funding future growth for the benefit of all who are depend-ent on it.
Excess profits that they could have used for future growth have been prematurely con-verted into payments for a bigger house, and/or a nicer car. This “I deserve it” life style approach and is very common and sadly, one that most fall into, handicapping their abil-ity to fund future growth to a level of self-sufficiency.
A great business is different; it is built to not be dependent on the business owner and has been structured for continued future growth to better care for its team members. So if an owner de-cides to step out or takes an extended period of time off, the business has the ability to continue to grow in size and profitability.
Earning great profits in your company in the beginning is not easy, yet they are not impossible either, and definitely never something to never forget to strive for. It all comes down to Aware-ness & Focus.
Awareness is about getting educated about what great businesses in your industry are capable of, and then doing those things that separates them from the other not so greats. Do some re-search on your industry, and discover what is possible. Hint; you will usually only see this in 5-10% of each industry.
Focus, the next step, is more about you developing the skills and habits that will serve you in achieving the great profits you aspire to. Training your team members to do likewise, and then not moving that focus will be what you will pay regular attention to. Take some business clas-ses & hire a mentor, consultant, or coach on what and how to monitor for successful focus.
Are you as profitable as you could be in your business? What could more profitability mean to you and your family?
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