3 Secrets to Profitability in Your Business (and they aren’t about money!)

When anyone mentions profit when talking about a business, it’s normal to immediately think financials, margins, pricing — anything to do with numbers. And while numbers are critical, there are other factors that aren’t driven by financials that a business owner has to pay attention to.

Secret #1: Know where you see your business in 18 – 24 months.

The first secret to profitability is being clear about where you are going and how you plan on getting there. What does it look like? Who are you serving? How much are you making? This doesn’t have to require months of strategic planning sessions or downloading business plans from the Internet. This has everything to do with you, the business owner, and what you want your business to become.

Too many business owners come up with an idea, immediately start selling that idea and when sales slowdown, they are left second-guessing their product or service. It happens all the time which is why in certain networking groups you’ll hear business owners lament ‘I don’t know which of my businesses to talk about today’.  Since their first business didn’t succeed, they latched onto that next ‘shiny white object’ because they bought into someone else’s vision. It won’t work.

You need to take the time to SEE your business in the future and then make everything you do, every day, help map that route.

Secret #2:  Make the time to ‘think’ about your business.

The second secret to profitability is taking time away from your business to think about your business. Clarity comes with vision, your vision drives your plan and your plan drives profit.

Business owners should find 8 hours every month to simply explore what’s working and what isn’t. To think about new opportunities, new technologies, new markets, new products/services. This is a time to relax and allow your mind to think what’s possible and to make corrections if needed. Your business can quickly consume you. If you intentionally plan to disconnect at least one day a month and explore new possibilities, a renewed sense of purpose can add money to your bottom line.

Secret #3:  Creating a plan to targeting, capturing and caring for customers.

The third secret to profitability is all about the people you try so hard to impress – your customers. What’s your plan? If you’ve set up your profit plan, you’ve identified how much revenue you need to bring into your business every month.

To achieve those numbers, you need more than just a way of generating leads and landing new customers. You need to make sure you are targeting the right customer, capturing the right customer and have a plan in place to take care of those customers when they say yes.

Too often a prospect becomes a customer and once they have bought or completed the project, they go off our radar screen. It happens. We get busy chasing after the next potential customer. Not a good way to sustain a profitable business. The reality is keeping those customers is critical to your success. One approach is to create a Customer Charter. A ‘hang on the wall’ reminder poster that outlines how you are going to treat those customers in order to keep those customers.

Profitability isn’t all about numbers. Numbers are important but ignoring these 3 secrets to profitability will make getting to those numbers harder.

Want to learn to love your financials? Learn the positive side of making a plan that works and drives more profit to your bottom line?  My Destination, Greatness program lays the foundation for growth while helping you proactively plan for your success.

 

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