GROW THOSE NET PROFITS
Every business owner can generate more net profits than they already typically do. Do you believe this? You should.
Net Profit: the amount of money that’s left over after all the bills have been paid, including taxes. It’s a simple calculation. Add up all the business rent/mortgage, total payroll, utilities, insurance, advertising and marketing costs, vehicle expenses, and taxes, all these and other expenses. Get this one total expense number, the whole nine yards, figure it out. Subtract that number from your total income – income from sales and other sources – and the remainder is net profit – that’s it. This is the amount of money you get to keep. And whatever that number is, you can make it better.
Your net profit could be substantial right now, and that would please you, make you happy. Your net profit could be steadily growing right now, and that would please you too. Your net profit could be flat, that is steady, but at a level you feel is insufficient, and that would not please you. That would frustrate you. Your net profit could be decreasing. That would worry you. Allow your net profits to steadily shrink for too long and you’ll soon be out of business.
Everything you do in your business is designed to affect your net profit number – to make that number grow and then grow some more. And if that’s not happening, there are reasons. It could be a simple single thing that’s preventing your efforts from creating a decent net profit. It could also be a complex multifaceted group of things, interacting together, that are preventing your efforts from creating a decent net profit.
If your net profit is less than terrific, you may or may not know why? But it would certainly be good to find out why. For once armed with the right information you could make adjustments in your business activities and get your ship back on course and sailing smoothly.
What are the basic elements that are manipulated in a business to affect net profit? This is no mystery; you deal with these things daily. There are products and services, pricing and cost controls, marketing, workflow processes, and the human factors (behaviors, practices and habits). That’s about it. Get these elements right and you’ll enjoy a civilized net profit.
When talking about these elements I like to refer to your “If Goods.” Your business can win if you have respectable “If Goods.”
It takes 5 “If Goods” to win in business.
- If you have good products and services that people need, want, and are willing to pay for.
- If you have good pricing and cost controls that consistently add up favorably.
- If you have good marketing that presents irresistible offers resulting in enough sales.
- If you have good workflow processes that systematically get things done on time and on budget.
- If you have good human factors – i.e. behaviors, practices and habits that get enough of the right things done right the first time and every time.
The 5 “If Goods” produce net profits. And all these things can be tuned up, improved upon, made better – especially the human factors – the behaviors, practices, and habits.
My experience has been that business owners most often stumble in the human factors area. Because human factors – the behaviors, practices, and habits – encompass everything you do, these things cut across all the other areas, affect workflow processes, marketing, pricing, and so on.
GET YOUR MIND RIGHT. GET YOUR HABITS RIGHT. DO THIS FIRST.
When a new person joins The Master-Mind Alliance program, we will often start by looking at the human factors. We know that if we can get this stuff right, if we can tune up the behaviors, practices, and habits – that the person will make better plans and implement them better too. Once this is underway, all the other stuff gets much better. The business improves and net profits go up.
So yes, my opening statement is true. Every business owner can generate more net profits than they already typically do. A good place to start is on yourself.
Ultimately it comes down to this. To be infinitely more successful than you are now, you need to work harder on yourself than you do in your business, forever. Your greatest dividends are found in the investments you make in your own growth and development, for it is in the process of discovering your gifts and potential to work smarter forever, that you find your voice, your passion and your destiny. This is always true.
There’s an old saying. “Work on the man first, get this right, then the world comes out just fine.” And there’s no better time to start than today.