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Navigating the Journey
Not Earning Enough Profit Can Kill Your Business Success
I will never forget the day that my daughter and I went into downtown Winnipeg where we witnesses one of the last days of clearance before the well-known Eaton's Department Store would be gone forever. It was sad. You see, as a child I had always remembered the glamorous imagine that the family had built into their stores and how they fired our dreams for a beautiful lifestyle. The clerks were well dressed as were the department store windows. Each Christmas everyone in the area would drive to the city in order to view the dressed windows that amazed our eyes with their animated seasonal displays.
The merchandise was quality and the catalogue which contained all the necessities of life were welcomed by those who not only wished to see what was new in the marketplace but could also order items to be delivered to their community.
We thought that this empire would go on forever. But it didn't.
Financial analysts might be able to point to a number of factors that lead to the downfall of the Eaton stores but the bottom line is that it was just not making the profit necessary to keep going.
You see, it doesn't matter how wonderful your ideas are or how you offer services and products to the clients if you are not earning and keeping more than you are spending. Profit is the key.
You can kid yourself and state that things will get better but unless you are a multi-millionaire who doesn't mind pumping your funds into a dying business, you really need to look at solutions that are reasonable.
There are two things you can do to increase your profit. One is to increase your income and the other is to reduce your expenses. It's as simple as that. Putting money into something that isn't paying its own way is just a temporary patch to a long-term problem. Over time, if there isn't any profit generated from the business you will find that the business is at an end.
The best thing you can do right now to ensure that you will have a profitable business for years to come is to become very familiar with the health your business right now and set out a plan that will ensure that you always have more income than expenses.
Remember, as a solo professional, you make the decisions. Make good ones!
About the Author
Dr. Hancock has written a regular weekly column entitled “All Psyched Up” for newspapers in two Canadian provinces for more than a dozen years...