Simplify

My personal lifestyle goals include enjoying life, working as intelligently as possible, and still prospering massively. I use a few simple ideas in my quest for an amazing lifestyle.  While it looks easy, it takes thought, effort and planning. 

 The first step is simplification. People say they hire me because they want to "double their income and triple their time off." Oh sure, no problem! And ... the first thing they must learn to do is simplify everything, starting here:

1. Ruthlessly evaluate each and every activity you're engaging in, then reduce and eliminate those low-value activities that (a) take up valuable time while (b) contributing very little to your goals. It is tempting to answer the emails, surf the web for a lower price, go to Office Depot, and yet you could have one of your team members handle it while you're making the big bucks.
2. Do more of the things that make an impact on your bottom line. These are known as revenue-generating activities. When I hear, "I spent the whole day in my office and got nothing important done," I'm quite frankly flabbergasted. How on earth can you have a profitable business if you're not getting anything of value done? Then exactly when will you do valuable, profit-increasing, revenue-generating activities that need to be done to keep the business moving in the right direction. Without question, these activities are the ones you're supposed to do first!
3. Use "Zero-based Thinking" by asking yourself this question: What am I doing right now, that knowing what I now know, I wouldn’t get into again if I was starting over (such as: a relationship, business, activity, product, service, expenditure of time or money). When identified, this activity needs to be downsized or eliminated, or contact with a particular person needs to be minimized or eliminated. Implementing Zero-based Thinking can almost overnight simplify your life (not to mention lowering your stress level). Most likely, the next-most important questions are: How do I get out of this? and how fast? What should I do more of, less of, start or stop doing?

The benefits of taking the time to simplify are well worth it. You'll be doing work that's productive, the work you're doing will provide you with the cash-flow and profitability you need, so you can have the personal life you desire. The process takes time and is well worth the effort.

Multiple, Profitable Streams of Income

In my last post, I talked about becoming profitable. Your challenge, should you choose to accept it, in this ever-changing economy is diversifying, being flexible and staying permanently profitable. On top of that, you should be more profitable month over month, quarter over quarter, and year over year.

If you are selling only one widget or one service, it is possible you are leaving much on the table. Diversifying allows you to have different streams of income and if one dries up, you still have at least one other to fill in the gaps.

If you are a service provider, have at least three different services with options for customization in case your new client wants more and has the budget to afford it.

Examples: A CPA can do simple and complex tax returns, tax planning and have a bookkeeping department. Ideally, a portion of your business should be passive revenue, and in this case the CPA makes far more than a bookkeeper. The bookkeeper's services can provide an additional stream of income, while employing someone to provide a much-needed and asked-for service. An Executive, Business or Personal Coach can do 1-on-1 coaching, group coaching, write books or self-study courses, and do speeches or seminars. An HR consultant can consult, edit personnel manuals and do workshops.

If you strictly sell products, what are some complimentary products you can offer or refer and receive referral income? Can you sell from multiple price points to serve more of the clients you already have?

Your challenge is to expand your products and/or services to give your business more options for profitability. One of the best ways to decide what might work best is to listen to your current clients and prospects. They will tell you their problems and your job is to solve them.

Have fun figuring out how to expand your business and create new streams of income. You'll watch your profits soar, regardless of what's happening around you.

What's Your Model for Profitability?

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 ...

“It is always nice to read a short book that cuts to the chase (has zero fluff) with great ideas for reaching your goals.” ~Andrea Waltz, author, Go for No! Read the entire review here. Buy this book here. 

Honorée Enterprises, LLC. turns service providers into rainmakers, average producers into rock-stars, and dreams into reality. For more information on how we can specifically help you or your organization, click here. You can read all about Honorée here.