How Much Profit?
We’ve all heard that cheesy old saying a million times – ‘turnover is vanity, profit is sanity’. And you know why we’ve heard it so much?
Because it’s the difference between thinking that your business is making money, and actually having cash left in the bank once all the bills are paid.
Profit is what allows you to invest in your growth plans – through things like marketing support, growing your team, or hiring an epic business coach to support you 😉
But in a lot of cases profit can still seem ethereal and intangible, whereas how much money’s in the bank this week is so much easier to get a handle of and to understand isn’t it?
Getting to grips with this element of business is part of the journey from playing at business, to really taking charge and stepping up into your role as a business owner, and not just a person who does work for clients.
So, this week my business tips video shares some practical advice about how to become savvier over your finances and to take charge of becoming more profitable, rather than hoping, wishing and continually working harder. Because surely hard work will make you a bazillionaire sooner or later, won’t it Rodney?
The first step for most of my clients to become more profitable is to uplevel their own financial knowledge and get more serious about managing their money, rather than hoping it just keeps coming in.
Let’s be honest, for most of us, the accounts side of business is much more of a chore than a passion. But some of that comes because you don’t have that strong an understanding of things like profit margins, and your profit and loss accounts. So, it’s easier to label it as boring and give it minimal attention, isn’t it?
I’ve shared other brilliant (if I say so myself!) tips in this week’s video about working more closely with your accountant; getting more systematic about your invoicing and credit control; being realistic about your billable time; and getting a grip on over-servicing your under-paying clients.
All of these are small manageable steps, so if you’re thinking that financial gripage needs to be a mahoosive task then I promise you that it doesn’t. You can follow my tips to chip away at this and you’ll become a financial guru in no time.
Actually, let’s not over-promise. You probably won’t become a financial guru. But you’ll be more in control, more knowledgeable, and more importantly, far more profitable.
And who doesn’t love that idea?
Of course, if you’re somebody that needs more help to get to grips with this part of business, or if you know what to do but you struggle to dedicate time to making it happen, then I’m here to help. Why not head over to my calendly link and book a chat right now.
