Always Keep Your Eye on Profit

Check out our YouTube video – Always Keep Your Eye on Profit

A business client of mine recently lost a major account. His current financial outlook is bleak. Profit will plunge quickly due to losing revenue. This same client spent three years investing in his business, purchasing equipment and hiring talented staff. He borrowed to do this. Yes, that means he had consistently suffered losses.

To top things off, he mentioned that he does not like “selling” his services. So what is the purpose of business? Consider the pertinent words of management guru Peter F. Drucker: “The purpose of business is to create and keep a customer.”

There are only two pieces to the profit or net income equation – revenue and expense.

Are you doing everything you can to increase revenue?

• Hire a sales person.
• Advertise.
• Try new business models.
• Increase sales and services to current clients.
• Ask for client referrals.
• Get out there and sell!

Are you doing everything you can to decrease non-essential expenses?

• Before you hire, develop your sales pipeline.
• Delay investment in equipment until you achieve your defined sales target.
• Ask for vendor discounts or longer payment terms.

Tips

• Work with a coach to improve your selling skills.
• Write out your sales and profit goals.
• Post them in a visible place.
• Review them every day.
• Keep your eye on sales and profit will follow.

Progress is good; progress with profit is better. Always keep your eye on sales and profit. When you do that, you will increase your financial successes and move toward financial comfort.

Check out our YouTube video – Always Keep Your Eye on Profit