If you’re an entrepreneur with a goal of making your first 6-figures in revenue AND being profitable, I’ve got some real talk for you. It’s not just about what you bring in, you can’t ignore the number that represents how much you get to keep. Making a profit ain’t easy, and there are a ton of things that can get in your way. And let me tell you, nothing is more frustrating than putting in all that work and not seeing the results you deserve. Let’s talk about 4 things that may not be on your radar but are eating away at your revenue and keeping your business from the next level.
Inefficient Investments. Expenses are a no-brainer when it comes to what impacts the profitability of the money that you make in your business. This one part actually includes a few things. High overhead means you are paying too much for things and thinking of it as the cost of doing business, like rent and equipment costs. Those are obvious but what about all the technology that you keep buying that you don’t use or aren’t ready to use yet? How much have you spent on shortcuts you paid to learn that didn’t work? All of it represents investments that lacked a return.
Team Impacts. A lot of business owners think of the people they pay to work in their business as an investment they don’t get a great return from BUT they never think that because they were cheap on the investment they made into the people they hired that they got less than what they paid for. What does that mean? In plain language, you can’t hire $7 an hour or even $20 per hour task-oriented people without realizing YOU still have to do a lot of work before they can do the tasks. And because a lot still relies on you, you become the bottleneck when you don’t take the time to properly equip them to get the tasks done. Here’s another perspective you may not have thought about: if you can bring in $100 per hour by servicing the client or through time used to bring in more clients. Then you are losing $80 per hour every time you do a $20 per hour task. Boom!
Confidence Pricing. Not charging enough for your offer because you assume people won’t pay YOU more stops a lot of entrepreneurs from reaching the very abundance that they hope and pray for. You don’t price your offer based on how confident you feel or based on your current feelings of experiencing imposter syndrome. Instead, you use the fact that you have gotten past clients to the transformation to price your offer on the transformation itself. What is it worth to potential clients to live life on the other side of the transformation that you know you can give them? How much time would they get back? How much money would they save? How much money would they make? What is the market value of that transformation? Take into account more than your confidence around the price to get more money into your account.
Busy vs Productivity. We all have the same 24 hours but what we do in those 24 hours has more impact on how much money we get to make and keep in our business. Now… don’t get it twisted, I don’t want you to hustle and work 12 hours a day. What I want is for you to focus your time on doing things that move the needle rather than just doing things. You can be tired from working all day, but how much of what you spent time doing was actually productive for achieving money-making goals? Don’t be busy, be strategic. Did you know if you spent time being more efficient to getting the client to their transformation, that you would save time that can service more clients in a shorter amount of time -which will equal bringing in more money in a shorter amount of time?
If you are interested in an audit of your profitability, let’s talk. ShaCannon.info/talk