Daily I speak with business owners who are feeling pulled in too many directions by a growing business. It’s not just business. Many of us have family obligations, and want to take care of our health, too.
There are so many good reasons why small businesses should focus their offering on a clearly defined niche. One of the most compelling is that niche strategy not only helps you attract more clients like a magnet, but it does so more profitably, boosting your profits and putting more dollars in your pocket!
2015 is approaching rapidly! Every year, I use the last month to do strategic planning in preparation for the following year. Year-end is a great time to reflect on the year’s WINS and losses, along with all there is to be learned. Then, plan the year ahead.
Over the last weekend, I got to read Profit First, the newest book from Mike Michalowicz. As I read, I thought of one client after another who could benefit from implementing Profit First in his or her business. In talking to business owners day in and day out about the challenges they face in their business, I hear a lot of the same challenges coming up over and over. Many of these challenges relate to managing finances in the business.
I am a convert. “Profit First: A Simple System to Transform Any Business From A Cash-Eating Monster to a Money-Making Machine” will be here in less than a week, and for small business owners all over the world, not a moment too soon. I have had the privilege of reading an advance copy of this third book from author (and Provendus CEO) Mike Michalowicz, and the following is a summary of what I love about it.
While I have co-founded, built and sold two multi-million dollar technology service firms, I admit they were never truly profitable. Every increase in revenue seemed to be matched with an even greater increase in expenses. Every day I checked (and still do) my bank balances. As the balances would climb and fall, so would my confidence and my spending. I lavishly incurred new, unnecessary expenses when my bank account was fat. I panicked when it was thin.
Ask almost any business owner how much money their business makes and they will talk about the top line. We made $5 million this year! I raked in $7.6 million! We squeaked out $2 million. The truth is, that is not what the company made. Revenue is simply the amount of money that flowed into the company that year. What is left over is what matters. Profit is what matters.