Revenue doesn’t mean much if you spend more than you bring in every month.
If you listen to most business owners brag about their achievements, you’d probably think that revenue is the most important marker of business success.
“We broke into 6 figures.”
“We had our best sales month ever.”
“We’re the highest grossing location in the region.”
Of course, anyone who has run a business knows that’s not the case. As the saying goes, “Revenue is vanity, profit is sanity.” Revenue doesn’t mean much if you’re spending more than you bring in every single month.
Planning For Profit Instead
An important part of my quarterly action planning workshop is planning for profit. That means setting a profit target and working backwards to know exactly how you’ll achieve it.
Will you take action to improve sales conversion, so good leads aren’t slipping through the cracks? Maybe just knowing exactly how many sales you need to make to reach your target would be motivating. Your plan might have you delegating busy work, to buy back your time. Or maybe you’ll adopt new ways of working, leveraging technology to automate and increase productivity.
This Week’s Takeaway
If you’re not sure where the goal posts are, it’s hard to score a goal.
Do you know what it takes to break even each month, and do you have a specific, realistic profit goal on top of that?
Get More Done With GrowthCLUB!
Join me to get more done in a quarter than most businesses do in a year with focus, momentum, and a community of like-minded business owners.
My next business planning workshop (GrowthCLUB) is next week! Taking place on Friday, June 21st, beginning at 9:30am EST at The Living Arts Center, with guest speaker Hugo Breton from ActionCOACH.
Click here to learn more or register!
This is Marketing: by Seth Godin
Seth Godin’s “This is Marketing” shares valuable insights on marketing that can benefit anyone in business. “This is Marketing” offers a fresh perspective on presenting your product or service, no matter what it is, helping you connect meaningfully with the right people. If you’re interested in enhancing your marketing approach, this book is a great resource to consider.
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