This time of year many business owners revisit goals and objectives for the coming year. I know that I do and it’s a practice that helps me focus on what’s really important all the way to the task level.In all my years of working with small business owners and suggesting they do the same one word hardly gets brought up in the goal setting conversation and that word is profit.
I know every business hopes in the end to make a profit, but few make it a measure of success. I also know that may times small business owners look at what they pay themselves as profit, but here’s the problem with that. What you pay yourself is what you get paid for doing a job. Profit is what you gain from the investment of your time, talent and in some cases blood and guts.
Without profit what you’ve created is a really, really hard job. In fact, one of the saddest things I encounter is a small business owner working their tail off with no profit to show and compensation far below what someone else would ever suggest they do the work for.
So many businesses get fixated on growth, but revenue growth without profit is simply more work. Set goals for profit levels and make decisions based on growing profit.
Profit is the measure of the return on your investment. Profit is how you build something you can sell. Few others are crazy enough to buy your job, but profit is the demonstration that yours is more than a job.
You must start to make profit, over above your fair market wage, a primary goal for the immediate and long term future health of your business.
My recommendation is that your pick up Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential
It’s a great way to start understanding this important topic in plain English.