The Joy of Real Profitability
As entrepreneurs we love to talk about revenues. How we are able to use the latest and greatest strategy or tactic and experience amazing return with great revenues. Of course these kinds of revenues are really important AND what is even more important is the amount of money you are keeping, or your profitability.
This is a topic that does not get talked about a lot because often it’s a point of true embarrassment.
There are many people who experience amazing revenues from a workshop or a product launch, unfortunately way too many of them are not taking very much of that money home. Now there are definitely times and places where we invest with the return to come in not necessarily in the moment but in the follow up. The problem is the follow up is not happening or the return is not coming as expected. And so, we invest in the next shiny object and go again.
So how do you make a decision on when and where to invest? How do we track to make sure that the return actually happens? How long do we work with something before we decide it’s not for us?
The answer to each of these questions lies in your numbers and because they are your numbers the answer is different for each of us. Here are some things to consider as you are looking at your numbers.
- What does it really take to have a positive ROI on your deliverable? How much of your time and support time is invested and what does that investment cost.
- How many of your deliverables do you need in order for your company to be profitable? There are tipping points and sometimes we are threading the eye of the needle. As long as you are making progress in the right direction it works.
- How many different deliverables are you really working on? I often see way too many. Be sure to master one at a time. Make sure you are profitable with one, your bread and butter, before investing in the next.
As always if you have more questions as you are working through these questions I would love to visit with you. Please feel free to reply to this email or call our office 406 257 6044 and let’s find a time to talk!
Here is to your money working for you instead of you working for it because that is when it is truly joyful!
