Are you Making a Profit in Your Business?
Can you answer the question, “Are you making a profit in your business?” Many creative entrepreneurs can’t, including me. I remember when I first started my publishing company in 2002. I hired an accountant to set up Quickbooks for me and a bookkeeper to run the day to day financial operations. At the time, I didn’t know how to read any of the reports and wasn’t even sure what the information meant and I didn’t understand how to make a profit.
The truth is, I wasn’t thinking about making a profit, I was thinking about making money, paying my bills and having fun doing what I loved. And this thinking got me into trouble during the decade I ran my publishing company.
Here is the “simple” definition of profit, according to Merriam Webster Dictionary.
Simple Definition of profit
: money that is made in a business, through investing, etc., after all the costs and expenses are paid : a financial gain
: the advantage or benefit that is gained from doing something
To simplify it even more, profit is the money left over at the end of the month. Entrepreneurs often feel lucky to get to the end of the month and break even, especially in the first few years of operation.
I love being an entrepreneur and, in spite of the many mistakes that I made, I have also enjoyed many successes. I have won awards and published two books, one of them a best seller on Amazon.com. I loved being of service to people in my community and I am proud that North Texas Kids is still alive and well many years after I started it.
What I didn’t love was working hard with nothing to show for it. That was the hardest lesson I learned as a business owner. I was stressed out, maxed out and broke more than I care to remember. Profit matters! Profit makes it worth it! Profit is where the freedom is and freedom was why I became an entrepreneur in the first place.
This one mindset shift can help you to turn your business around.
Earlier I mentioned that I was focused on making money, not on making a profit. What did I mean by that? I was so focused on paying staff, paying vendors and getting all my costs covered that I forgot to ask some key questions, specifically about pricing and profit margins.
The number one reason you may not be making a profit is because you are not pricing your products and services properly. If you are already working too hard and feeling like you have nothing to show for it at the end of the month, then it’s time to take a look at your business model again. Entrepreneurs often think, “If I just work harder, if I just sell more… my problems will be solved.”
What if the solution were much simpler? I invite you to consider what you are offering and how much you are charging and make sure that you can make a profit. Not sure how to do that? I invite you to schedule a 30-minute complimentary “I want more profit” strategy session.
During this 30-minute complimentary session we will look at:
- Your pricing and packaging for your services
- Your biggest time wasters in your business
- One action you can take to get you on the Path to Profit immediately
I only take a few of these sessions each month. You can apply here for your session.
Copyright: olvius / 123RF Stock Photo