Too often I see business owners chasing a random revenue goal. The most popular by far….$1million, then $3million then $5million. This is great stuff, I applaud having goals and pushing ahead however a critical piece is to understand the underlying profitability of your business because PROFITS and not REVENUE, pays the bills and builds your wealth.
So are you able to answer profitability questions? My favorite are:
- Who is your most profitable client?
- Which is your most profitable service line?
- How much do you personally take home (net before taxes) per hour that you work?
If you cannot answer these questions with clarity and confidence THEN we need to have a conversation. The answers to these questions are the backbone to your business and without this knowledge, in my opinion you are building your business with straw and not bricks. One gust of wind and your business will come tumbling down.
The information you need to answer these questions is at your fingertips. I recommend you take one day a week, your “working on” the business day and dig into the details before you spend one more dollar on marketing services that are not profitable or taking on clients who will not add dollars to your pocket. Reach out to me if you need help to analyze your data.
And for those of you who want to get ALL your answers in ONE DAY, I highly recommend my intensive one on one consulting day. This is where we dig into every aspect of your profitability, your taxes and your cash flow for maximum results, guaranteed.