Profit is NOT a Four Letter Word.
It is the natural result of the value your efforts. If your business is not experiencing Profit, the poor economy might not be the problem.
You’ve probably heard that small businesses have notoriously high rates of failure – as high as 80% within the first 5 years. Although there are many reasons for business closures, money – or the lack of it – is often the most critical factor. In my work with entrepreneurs and small businesses, I find that there is often a lack of understanding of money, cash-flow & profit. Follow me – I’ll explain.
Most of the service businesses I work with are First Time business owners. Most were experts in another field or even the same field and possessed a deep desire and passion to make a difference which led them to open their own business and become an Entrepreneur. Most began their businesses without experience or training in Business Ownership. The lack of education and training is in my opinion, at the core of most businesses failures. Entrepreneurs, small business owners (including those with professional practices) are notorious for loving their work but when it comes to business knowledge, they are over-confident in their belief that their passion and expertise for their business idea is sufficient enough to produce success. It rarely is.
Most businesses I’ve worked with are also unaware that Profit is slipping through “holes” in the business. Finding and plugging these holes is a particular passion of mine. So far, every business I’ve worked with has had holes. Lots and lots of holes. Sometimes, just plugging the holes is enough to create substantial increase in Cashflow and also in Profits for the business. And, sometimes, deeper work is required.