Powering Up Profitability: Your Bottom Line
Welcome back to our final tip in our Powering Up Your Profitability series! In this series we are sharing 5 tips, along with specific action steps, you can take right away to begin powering up your profits!
Miss a tip? No worries!
Tip # 1: Plan For Growth
Tip #2: Increased Revenues with Tax Strategies
Tip #3: Cash Is King
Tip #4: Your Numbers
This weeks tip is about getting honest about your bottom line.
When we really know where we are with our bottom line, we can begin to create a plan to truly close the gap from where we are to where we want to get to.
There is a phrase we use in the financial wellness world, which is… “pencil it”.
This is the act of “running the numbers” to see if a project or investment is worth your time and money… unfortunately, it’s a step many entrepreneurs do not take, and one of the reasons so many business owners fail to make a profit.
After months of disappointing results, some will throw in the towel before they’ve even really started, and others will continue on the path of not making the bottom line profit they intended.
The truth is, most entrepreneurs, perhaps even you, spend the bulk of their time, energy and mental focus on everything BUT the bottom line.
They are spending so much time working in their business (posting, surfing, creating, learning, delivering, etc) and very little time on making sure at the end of the day… you are working on increasing profits.
Profitability is the ultimate path to time and money freedom and we are here to help you get there.
Determine your current rate of profitability.
The formula is Revenues (Gross Profit) / Net Income (Revenues – (COGS + Expenses)).