63. What kills your profit?
November 22, 2019
Hey, are you wondering how well you’re doing with your bookkeeping? Maybe you’re at a total loss of where to begin. Maybe you’re not sure how well you’re actually doing. You just need to know the next steps to take.
During a bookkeeping strength assessment, I work with business owners one on one for about 30 minutes and identify what their next step needs to be. I’ll lead the conversation by asking some open-ended questions and then ask ten laser focused questions so I can pinpoint exactly what you should do next and how strong you are with your bookkeeping. Business owners find this to be the boost of confidence they need to tackle their bookkeeping head on.
To get on my calendar for a free session, you can email me at firstname.lastname@example.org or message me on Instagram @lydia.miller.mba. Now on with the show.
Welcome back to the podcast!
We are in the middle of our series on profit. Last week I talked about 10 ways you can become more profitable.
This week, I want to talk about what kills your profit in your business.
Remember, profit is defined as revenue minus expenses.
The cash you have left over is the profit.
So, what kills the profit in your business?
I love lists, so here’s a list of 6 things that kill your profit.
1. You. Yes, you. If you are constantly overspending or not bringing in enough revenue, then that is a you problem. The best part is, you can fix you! You can learn to say no to spending money on everything and make a more focused effort in bringing in more revenue.
2. Unexpected expenses. Your computer breaks, you have a big bill come in, something is more expensive than you thought it would be. All of those things kill your profit.
3. Debt. When you take on debt in your business, you’re promising future revenue to someone else before you even earn it. When you have massive debt payments, you’re basically giving all of your profit away before you make a dollar in revenue.
4. Ignoring your numbers. I’ve seen it over and over that when a business owner ignores the reality of what happened in previous months in their business and don’t pivot to reality instead of what they think might be going on, they kill their profit. They continue to overspend because they’re ‘pretty sure’ they’ll be ok. Look at your numbers each month to avoid this! Make decisions based on reality instead of what you’re hoping your business is doing.
5. Not planning for the future. You may have had a great year last year. Your profits may have been outstanding! I am 100% for looking at your numbers and seeing what you did in the past. However, if you’re not planning to make more profit and being intentional about how you get there, then you’re slowly killing any chance you have in the future of making a profit.
6. Bad customer service and experience. Your customers will want to come back if they have a great experience and they will want to tell their friends! If you are not giving your customers a stellar experience, then you are not giving yourself a fighting chance of growing in the future. You want to make sure that you deliver consistent high-quality results as promised to your customers, so they continue to give you money and you continue to grow your profits.
Don’t kill your profit before it even gets here. And don’t be wasteful with the profit that you have! You can listen to episode 62 to learn 10 great ways to spend the profit in your business.
Are you still struggling with habits that are killing your profit? Maybe you need a second set of eyes on your business to point out just where you’re killing your profit.
I’d be honored to work with you. To get started, email me at email@example.com with the problem you’re having and we can discuss the best way to get to a solution in a bookkeeping strength assessment call.
If you are ready to use your numbers to help your business, please subscribe so you will be notified when the next episode drops.
I would love to connect with you. You can find me on Instagram @lydia.miller.mba and always by email firstname.lastname@example.org.
So until next time, go, make it happen.