Why do people quit their jobs to open up a business following a passion only to find themselves working longer hours, worrying about lack of money and scared that they will end up sick from stress and lack of time to look after themselves physically and emotionally?
That’s because following your passion will not guarantee financial success. Passion won’t pay your bills, your wage or enable you to grow your business.
Running a profitable business requires you to not only deliver a service or product, you may love, but also be a kickass manager and entrepreneur. That’s the vital combination and the key to success.
So what can you do to master this combination and create a successful and profitable business?
1. Find out what your customers need NOT what you think they need.
Your customers do not care that you are finally doing what you love but only how they will benefit from it.
Find out your customers pain and provide a solution. Find out your ‘why’, your mission and your unique value. Why should people come to you for a solution to their pain?
2. Get paid on time
Cash is king. You are running a business, not a charity or a bank. Have clear boundaries around when and how you are paid. Look at accepting different payment methods like direct debit or credit card, insist on deposits for project work and email your invoices with links so your customers can pay immediately. Also, have your payment terms on your quotes not just your invoices.
3. Price to make a healthy profit.
Calculate the real cost of the product or service you deliver. Include postage, packaging, software and other expenses that you have paid in order to deliver the finished product or service (these are your direct costs). Don’t forget your overheads such as rent, insurance, professional association fees, accounting fees, IT, wages and other general expenses. Once you have deducted these from the sale price are you making a profit? If not you may need to look at increasing your prices, inventive packaging or decreasing your direct costs or overheads.
4. Know your numbers
Peter Drucker, one of the most amazing business visionaries of our time famously said ‘What gets measured gets improved.’ You have to set financial goals that are tangible and measurable and from which you can plan for growth. This requires correct and up to date accounts and you being able to understand the key reports that provide a true and accurate picture of your business financials.
5. Plan for growth and sustainability
Business growth and sustainability requires planning. This means analyzing your financial reports and having a business plan.
The complexity of your business plan will depend on your business. Try not to get too overwhelmed by the process and begin with a simple plan. Your business plan is an evolving and dynamic document that grows with your business. Revisit and review it regularly so it remains an accurate road map to the different stages of your business.
6. Get help from an expert.
If you feel stuck then seek support from a coach or mentor. Sometimes the solutions are simple and obvious but you are not able to clearly see them. Seeking guidance from someone who is qualified and experienced in creating business growth with not only make a massive difference in business profits but also fast track your success.
As an entrepreneur you are not slaving away to make your boss rich but to do what you love and get paid well for it. If you can give your customers what they want, ensure you get paid efficiently and with a healthy profit and implement strategies for business growth and sustainability then you are on the right track to success.
If you are ready to fast track your success and make money doing what you love, let me know. Not only would I LOVE to work with you but I know I can give you the tools, strategies and support to get you there!
Contact me at firstname.lastname@example.org
About our Ausmumpreneur Expert :
Marisa Garra-Punshon helps small business owners make, manage and multiply their money by working with them to increase their cash flow, understand their finances and create accountability for their own success. She is passionate about streamlining financial and administrative systems via cloud solutions, which lead to greater efficiency, productivity and profits.
Marisa runs two businesses, Miss Moneypenny Presents and Orbit Accounts. She is a Xero consultant, designs online financial and software training programs, a speaker, Dream Builder Coach, MindPT Certified Master and a mum to two gorgeous teenagers.
Her consulting methods are unique as she provides a holistic combination of teaching small business finance principles and cloud implementation with strategies to achieve life goals and create and maintain a positive mindset.