It Is the Bottom Line After All
It Is The Bottom Line After All…
So why are we in business? Profit of course!
Yet when I say that, I know there are so many people that are nowhere near having a profitable business that they can bank on.
Investing is a process that has an ROI – a return on investment.
Sometimes the ROI is in time and peace of mind, allowing you the freedom to choose what you want to do when you want to do it.
More importantly though (at least for a successful business), your ROI should add dollars to the bottom line.
So what is a good bottom line? (This percentage is calculated by dividing your net income by your gross revenue).
Is it 10% to 15% or is it 30% to 50% of course you know the answer is, it depends… ON YOU!
What is OK for you? Are you simply tolerating what you see each month, quarter, year? The answer to this lies in your money principles – your beliefs around what is possible and why when it comes to money.
The key to mastering your money principles is first to become very connected with your numbers.
Question 1: What does it truly take to produce the top line (gross revenue) when it comes to your investment of time and money?
Question 2: Where can you change how you are investing (expenses) to better streamline so you are able to increase the top line without a negative impact on the bottom line (net income)?
If you are still trading time for money (or in other words charging by the hour) then I have some great news for you! I changed out of this particular business model into one of packaging and got really clear on my pricing. I added $150,000 to my top line in 6 months and increased my bottom line six-fold!
Having worked with entrepreneurs for over 30 years, I know I can overlay this new business model on any business in any industry.
Are you ready to increase your bottom line?
Look at your business in light of these two questions and let us know what you find!