As we start the new year – new decade even – it is a good idea to review last year before we try to rev-up this coming year. It's important to figure out – what happened to my Profit?
We are all in business to make a profit so when this doesn't happen it is normal to wonder where we went wrong,
As I teach in my workshops – Profit is not something you add on at the end, it is something you plan for at the beginning. I am really excited to be able to help business owners make 2020 not just a year of survival but a year of real growth – particularly when it comes to making a profit!
You didn't start your business to become an expert at HR, IR, Workplace Health & Safety yet you must learn what you need to know about these issues as they impact on your business. Similarly you certainly didn't start your business to become an accountant and this skill is likely light years away from your core skills/products or service that you offer your customers. Yet, what should you charge? how do you cost out your products/services?, what does making a profit really mean and how can you achieve this, consistently year in year out? – are issues often left out of the ‘imperative knowledge' equation.
Understanding the numbers around your business is critical for it to grow, yet it is often the missing key ingredient. These numbers are what drive your business but often get the least attention from business owners. A high-dollar turnover can often be seductive and can suggest that your business model is more successful than it really is. Regularly increasing sales each month has the potential to suggest the company is profitable but without a good cash flow situation the business can be put in a choke-hold by its own growth.
I utilise the ‘Profit First' method of cash management. I was trained and certified by the Profit First Organisation in the US to guide business owners and entrepreneurs in maximizing their profits. As I recognised the obvious need and benefits of looking at your business financials differently, it wasn't long before I took the step of building on my extensive accounting background by becoming certified a Profit First Professional. In fact, I am the first certified Profit First Professional in Western Australia.
Once certified and after having successfully applied this simple system to my own business, La Trobe Bookkeeping, I am now on a mission to get in front of as many small business owners as possible to let them know that their business can be transformed from a cash-eating monster to a money-making machine.
Working closely with business owners, I address the natural instincts of entrepreneurs and small business owners to be focussed on the income earning aspects of their business such as sales, marketing etc., rather than having a firm grasp of their business financials. It is more likely their decisions are made at the gut-level with cash-in-the-bank being the determining factor.
These natural gut-level instincts are part and parcel of the spirit of entrepreneurship and are not necessarily bad. These natural instincts or habits are not to be broken but should be leveraged to drive profitability in your business. This is what Profit First does and that is why I am a passionate advocate for implementing this one change that can transform your business.
You can register for the first of my interactive workshops for 2020 by clicking HERE. I promise this workshop will change the way you will look at your businesses, finally understanding that you, should be and can be rewarded for the risks, hard work and challenges that you face in today's tough business climate.