The very foundation of being in business is to be financially successful in delivering what you do best for those who you’ve determined are your ideal clients. If your business is not making a profit, or you don’t have an interest in making money it – then it’s not a business. It’s a hobby.
I’ve outlined 6 simple ways I’ve learned to keep my money from leaking out of my profitability bucket.
1. Know your numbers.
Successful entrepreneurs do the things they don’t want to do, and your financial picture is the first and most important step to staying in business. As a creative, that’s not usually our first choice of tasks to do.
Track your fixed expenses and your variable expenses for starters. By being aware and watching for any changes, you can respond accordingly. Simply minor increases in vendor shipping can go unnoticed causing that small drip from your profitability bucket.
2. Make sure your pricing is for profit.
Track to know exactly how much time you spend on each task. Don’t guess. Time is money. Outline the process for each task that goes into what you do. From the first phone call to delivery. When you spend more time than allotted on a task, you are taking away time from other things that need your attention. Time is money too. If you aren’t charging for this extra time, then you must re-price the product/service, or it’s a drip from your profitability bucket.
3. Be mindful about your spending.
The internet, special offers, one-click buying, conferences, social media suggestions and promises all make it very easy to spend money on those exciting thing that promise to make us richer, better, stronger. Before taking advantage of that “magic pill” or an investment, ask yourself two questions.
1. Do I need this now, will I be putting it to use immediately (or are you just adding it to your to-do list of good intentions?
2. How will this increase my business revenue? If you will not see a return on your investment, then it’s a “nice to have” not a “need to have.” Add up all those things you intend to get to, and that adds another, larger hold to your profitability bucket.
4. Vendors and Suppliers
Review your vendors and make sure their quality, pricing, and timing are still meeting your expectations and needs. Do they alert you to price increases or changes in how or what you rely on them for? Knowing this and revisiting your numbers, so you account for them in your pricing or consider changing vendors. Not addressing this and revisiting your profit and pricing calculations will create a growing hole in your profitability bucket.
5. Set budgets for benevolence
Create a budget and criteria for anticipated donations so you can support the organizations and causes you are most passionate about. It seems everyone has a passionate cause and you will be asked. Having criteria and a budget allows you to make the best decision for your hard earned money and override feeling obligated to everyone who asks. Randomly writing checks for $25 here and $10 there add up to a big hole in your profitability bucket if they aren’t part of your business’ budget.
6. Be acutely aware of the little words and phrases
ONLY – Those special offers that claim “only $x per month” or “only the price of a cup of coffee.” Do the math. Add up those “onlys” – $10 a month is $120 a year. Have three subscriptions at $9.99 a month? That’s $359+ a year, and you’ve probably forgotten about one of them. That’s a pretty big hole in your profitability bucket!
“It will be great for your business” or any comment that sounds similar. Moxie women don’t tolerate being “told” anything. Only you know your goals, budgets, and purpose. So don’t think twice about asking real questions and if your gut is telling you to say no, then say no. And especially, if you say no, you are not obligated to explain. A failsafe way to beat a scripted comeback is to kindly say “Thank you, but that doesn’t fit into my marketing/business plan.” Period. Try it, it works! It isn’t an objection they can counter. You have disarmed them.
I hope these tips have given you insight to making and keeping the bucket of profitability from leaking your profits.
Are you ready to level up your business, blast through the barriers and obstacles that are keeping you from showing up bold and confident in your business? Call for your free chat today, let’s get you and your business to be seen and shine!