What is your why for having your own business, whatever that, there are reasons Why your business must make a profit.
Making profit must be at the top of your business goals, ignore that at your peril.
Firstly, I am going to tell you why making profit is vital for you and your business. Secondly, I will tell you how you go about making profit.
Why are you in business?
We all have our reasons for being our own boss. It could be financial independence, being more in control, helping others, freedom and flexibility. Maybe its life circumstances, a change of scenery, grabbing opportunities and making money!
For myself, I went into business over 26 years ago, started from my own back bedroom, because I wanted more control. I wanted to help people, I wanted to make an impact on their lives, I wanted to have that independence, make my own decisions, and make money.
Moreover, whatever your why, helping others, whether it is having your independence, your freedom, making money, whatever it is!
Why making profit is vital
Making a profit is vital for your business. It is the fuel that keeps it going and helps you to grow. Without a profit, your business will eventually fail. And if youre not making enough of one, then its time to look at what needs changing so that you can start making more money.
It doesnt matter how small or big your business is every company needs to make a profit to survive and thrive. Profit is not just about numbers on paper; its about having the resources available when they are needed most. This could be hiring new staff or investing in marketing campaigns. So why does profitability matter? Because without it, there would be no way for businesses like yours to continue operating!
Why you need to make profits
You need profits from your business to keep growing and expanding into other areas of work as well as being able to take care of yourself financially while running the company too! This means that taking steps towards increasing profitability should always be at the top of your list of priorities because without them, whats the point in continuing with your venture in the first place!
Where profit is not set as a goal then you cannot pay a decent wage to you and your team. You cannot invest in the future, let alone keep up with the present. Cash flow suffers along with your own well being.
If you do not make a profit, if you do not cover the costs of running your business here, then your business will eventually decline. You will not be here to carry on, you will not be able to sustain yourself, you will not be able to continue to deliver your why.
It does not whether you are a private company, not for profit or a social enterprise, you are still a business. Why your business must make a profit applies to you, whatever your business shape, size and form.
For some profit is a dirty, vulgar word, not a noble pursuit. If that sounds like you then move away from that thought, relegate it to the mindset dustbin, and rethink your outlook.
How much profit you should make, how you make it and what you do with it is a different conversation. Values, ethics, and integrity should be part of your business DNA, it certainly is for me.
How do you make profit?
Do you want to make more profit in your business?
Making profit is not the same as what you sell the item for. The value of the sale is not the same as profit. Making a sustainable profit is difficult and it is not easy for everyone to do it. Besides, if it were that easy, everybody would be doing it!
You need to crunch numbers, use our quick and easy FREE online calculators. Use them to help you make those key decisions on pricing, profitability, break even, to name but a few.
What are your goals? Where do you want to go with this company? How will these changes affect your bottom line? These are all important questions when trying to figure out whether or not a decision will help increase profits or just cost money without giving anything back.
To make more profitable decisions by understanding what they mean for your business bottom line so that you can reach whatever goal(s) have been set for yourself and/or company. Its hard work but worth every second because there are no shortcuts when it comes down to making good financial choices!
Take some time today (and every day!) and think about where your business wants to go financially before taking any action steps towards those desires! Making profit, certainly sustainable profit is not easy. But thats life and business for you. Besides, if it were that easy everybody would be doing it!. If you need to crunch numbers, then use our FREE online calculators.
Do you know your purpose, goal, plan and numbers?
You need to define your end goal. What is it that you want to achieve? How do you want to impact somebodys life? Are you solving a problem or fixing something or relieving the anxiety and stress in their lives? If not, say goodbye to your business because without profit, there is no way for it to continue.
Know Your Purpose, Goal Plan And Numbers! Its time for an honest conversation about what success really means for entrepreneurs today. We have all been told that we need a good idea and some money but if you dont make profit then there will be no way for the company to continue.
So lets talk about how we can set ourselves up with a clear sense of purpose. You need to create goals that are measurable and achievable which will lead you towards your end goal of making profits. Do this and your business can grow sustainably over time. When you plan ahead, then set milestones along the way Above all, when things get tough (and they always do) you have something tangible on which to focus our efforts instead of just sitting around waiting for things to happen on their own accord. This will help you stay motivated even when times get rough!
Finally lets talk about numbers. Numbers are your best friend in business, they wont lie to you. Get to know them inside out so you run your business successfully. Moreover, you can any question someone might throw at you.
Making profit is vital for your business. Its not just about the bottom line its about being able to grow and create more opportunities and jobs. Profit can help you take on new projects or invest in your company. I hope this vlogand blog has answered the question Why your business must make a profit.
OurFREE online business calculatorsare here to help you get a better understanding about your numbers, making profit, giving you options, saving you time, improving your money mindset. and setting your goals.
Get a better understanding of your numbers. Type in your numbers and see what they say!
Get intouchwith us to see how we can help you with your sole trader and company accounting and tax needs. For more business and finance ,news, advice and tips, dont forget to watch our weekly broadcasts, listen to our weekly podcastI Hate Numbers.
I hope you found this useful. Please share it with your friends and colleagues. Have a fantastic week and see you on the other side.