Are you "just in business" or do you actually have a profitable business? Is your business more and more profitable over time, or are you just barely keeping the doors open and the lights on? I'm surprised by the number of people I talk to who are barely breaking even, or worse, losing money on a weekly, monthly and annual basis. You've heard the saying "cash is king." This is especially true in our current times. In order to have cash, you've got to be profitable. In order to be profitable, you must obtain clarity about several critical aspects regarding your business.
Do you have answers to these questions: Are you and/or do you know how can you become profitable? Who do you serve the best and how do you serve them the best? What's your plan? You must have clear, concise and definite answers to these questions. Then, and only then, can you proceed toward becoming profitable.
Profitability is a result of knowing (a) your most profitable product or offering and (b) knowing the profile of your best buyer. Your most popular product or service is not always your most profitable. Many business owners confuse what goes out the door with what makes them the most money. Identify the products and services that provide you with the most profit. Next, create an ideal client profile. I call this the Who #1: what are the qualities and characteristics of your ideal client? The Who #2 is a list of actual target clients who fit your profile. Now you can begin the process of (creatively) marketing your most profitable products and services to the best buyers! This leads very quickly to profitability.
What's your Plan? Do you have a business plan? An annual plan? A 100-Day Plan? It is imperative to have a plan and work your plan! Not having a plan virtually eliminates the possibility of a profitable business. The question becomes: Are you in business to survive or thrive? (That's what I thought.)
Once your ideal products and ideal future clients have been identified, market to them and only to them. Here's what you need to STOP doing: Just taking work to take work to get revenue in the door. It's a trap! Your singular, intense focus should be in finding your best buyers to buy your most profitable offerings. Period.
In my next post, I'll talk about having multiple profitable streams to diversify your business ...
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