A business consultant once told me this: “Business takes no prisoners!”
I have never forgotten it. If your business is losing money, you will eventually “go out.” It’s that simple.
Business is a black and white proposition.
No gray area. Either you’re making money or you’re not.
END OF STORY! PERIOD!
There comes a time when each of us, as business owners, need to sit down with a calculator and figure it out. Oh, I know you’re probably pounding the “top line” and gross sales are just great.
But what about gross profit. Let’s go a little deeper and ask about your net profit. Reality dictates that the top line is meaningless if your net profit runs negative. Business takes no prisoners.
With entry level trainers, I always get a blank stare when I ask the question: “What do you charge yourself for labor?” Rookies simply charge $X amount per session and put it in their pockets. They never consider costs of doing business.
This is true even among some very seasoned professionals. This is the quickest route to failure. Business take no prisoners.
Here’s what I did with the advice. Take it for what it’s worth.
- I hired an accountant (you might work a trade-out) to look at my business and create a spread sheet to show gross sales, gross profit and net profit. It became very detailed, so I attended some night classes to help me understand “profit and loss” statements and “balance sheets.“
- I created active spreadsheets in Microsoft Excel so at the end of EVERY DAY I know where I stand. It only takes 5 minutes at the end of each day to have complete financial snapshot of my business.
- I created daily, weekly and monthly goals for my business based on those snapshots… and work tirelessly to meet or exceed those goals. (for those of you who call me on weekends and are surprised that I answer the phone…. this is why!)
I still conduct these activities today. You know why? Because business takes no prisioners!
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