More Money Won’t Solve Your Problems: Let’s Talk Profit vs. Revenue – Ep 13
How much do you know about your business’s bottom line?
Working with entrepreneurs, I hear the same thing over and over: if I could just make more money, that would solve all my problems.
The thing is, my experience as a business owner and coach has also taught me that’s just not true. Instead of a laser focus on boosting revenue—what your business makes—it’s a focus on the profit—what you make after expenses—that matters most. There’s a reason it’s called the bottom line!
Don’t worry, I’ve always got your back! Here are three things to think about as you dive deeper into making your business succeed and creating your rich life revolution.
Build your cash flow to build your wealth
Starting a business doesn’t create freedom (ah, remember when we were young and foolish and thought we’d have more free time if we just worked for ourselves? Ha!), and it doesn’t create wealth.
That might sound surprising, but it’s the truth. Your business creates cash flow, but in order to create wealth, you have to start investing.
Let me say that one more time. You have 👏 to 👏 start 👏 investing 👏! Like, now.
Know why you want to grow your business
Having a business is not the same as growing a business. So often, the chatter around entrepreneurship is all “I went from $1000 a month to $100,000 a month in my second year!” or “My team tripled in 2022 and we’ve never been stronger!”
But growing and growing is not the only way to win the title of Successful Business Owner.
Expanding your company is great, but it comes with loads of extra costs, too. Thoughtful growth at the right time is way more sustainable. Before you scale up, make sure you’re doing it for your own “right” reasons, whatever those might be.
Focus on strategic expenses
Please, please don’t ignore the numbers! To be a successful business owner, you need to know where your money is coming from and where it’s going.
Think strategically about your expenses; if you make efficiency the name of the expense game, you can increase your profit even before you increase your revenue!
Make your expenses do the work. Each and every one should be saving you time, getting your product to your client more quickly, or driving additional sales.
This is absolutely not me advocating for trying to save money at every turn. People often ask for the cheapest service or product, and yet they still want the best result. That’s not a thing—sorry! Look for the most bang for your buck, not the least buck.
How many of these tips did you copy and paste? For even more details on how you can boost your profit even before you boost your sales, tune in to the Rich Life Revolution podcast!