3 Things to Know That Will Increase Your Profit: Part 1
Did you know that you are in business to make a profit?
Some businesses out there seem to have forgotten that they are not a non-profit or a philanthropic organization. This may sound crazy, but interestingly enough, I see it more often than not with the companies I work with.
These companies need to be reminded of a shift in their thought process from building a better widget and/or supplying the best service to running the best business that also builds the best widget and supplies the best service.Very commonly a small-to-medium size company is started by someone with:
- a great idea
- the ability to make things happen, and yet,
- a lack of skills at building and maintaining their business.
If you ask them how to make the widget go faster, they can figure it out 5 different ways…But, if you ask them how to improve profits through efficient staffing or to tell you what their overall marketing strategy is, they draw a blank.
This is where they stumble. Every other hurdle was jumped, but this one is really high. It may even come as a complete surprise and knock them down.
Various levels of business growth can do the same thing and it can seem like there is no obvious way to overcome the hurdle and move beyond it.
If you’re ready to get over your business hurdles, download my free eBook: Small Business Bootcamp: How to Fix Your Business In 5 Minutes
The important thing is to get back up, even if you’re a little bruised, and continue onward. With that thought in mind, here is the first of three things you need to know to help get you over the hurdle and running again.
Know your mission
Why are you in business?
What made you start it?
What need are you trying to answer with your product or service?
Be very specific.
Example: You are not a bike manufacturer. You provide dependable transportation means for everyday people that is not only better for the person’s health, but the environment as well.
I have written and spoken about this many times, but it is vital to the foundation of your business and every action in the company should relate to this ideal. Being clear about this will help you ask the right questions and listen for the right answers. Should you invest money in R&D to make the wheels go faster? Or should you make the bike last longer?
If your goal is to provide dependable transportation, the faster wheels don’t matter as much as the longevity of the bike. What is it that drives the decisions for your company? It is very powerful when you have a baseline to reference when making important business decisions.
Invest the time with your inner circle reviewing or establishing the mission for your enterprise. Examine some of your recent strategies and decisions and be sure they are aligned.
Want to talk more about this? Let’s have a 60-minute complimentary conversation!