Over the years as we go about this last quarter I have recognized the importance of focusing Mind Masters members on the topic of managing what’s behind the scene, the financial status of the business. We started our businesses because we wanted more personal freedom and possessed valuable knowledge and skills in a specific industry or profession. However, many of us didn’t start with a clear picture of the business we were going to create. Instead, we went out and did what we were good at and the business was built around us.
The question I like to pose is where are we now in relation to understanding the financial aspects of that business? Some businesses start on a shoestring and grow rapidly. Others take hundreds even thousands of dollars and go at a snail’s pace. The question to ask is “where am I now”?
Questions that are need to know: 1. How are your spending habits, bad one’s can kill. Learn to distinguish between needs and wants. Finding cost saving methods of producing, distributing, advertising, and servicing customer’s needs can greatly impact the ability to grow profits.
- Do you know where you are going before you jump in too quickly? When you make decisions for new products, services, markets or advertising is it based on good information? Do your research. To produce the results you want, there must be a return on any investment of time or money to make sense for your business.
- Have you considered creative financing solutions? Barter your services in exchange for what you need. Do co-op adverting/promotional programs with businesses that reach your same market. Learn what business loan options are available. If you already have debt in the form of small loans and credit cards balances, there may be a significant cost savings advantage to refinancing and consolidating the debt.
- How can you create new revenue opportunities or improve the profitability of your current revenue streams? While more sales is an obvious response, it does not fully address the result you are trying to achieve. Think about improving the balance between revenue and profits. How can you earn more profit from each dollar of revenue?
- Have you consulted your accountant about tax considerations? Seek out their help. He/she can help you understand the tax impact of your business decisions and assist you in reducing your overall exposure to taxes.
Remember, it is the continued investment and perseverance that pay off. Small investments over time produce consistent results.
Your Challenge: Review what you are spending. Know what your “key profit indicators” are and adjust both your time and money.
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Hold the Date – January 6th, 2020 Mind Masters Business Summit