I'm a huge fan of small business. Especially mine! We in the small biz sector rock! According to some stats, small business employs 60 million people in the U.S. and makes up just over 50% of the workforce. Go us! So while large companies may employ beaucoup people — and some cities are doing everything they can to lure them to their zip code — those of us with smaller companies are still the backbone of our local economy. Bigger isn't always better, right? As long as you're making money, size doesn't really matter. But one of the downsides of a small company is not always having enough expertise or staff to carefully analyze and plan your financials. So what can you do to up your chances of having a profitable small business? That's the million-dollar question, baby! And you've come to the right place to find out.
How I Got Me A Profitable Small Business!
I think one of most important things any small business can do is develop a system for tracking expenses and revenue related to every project or client. This includes how much time is spent on any given project. Time is money! We've all heard that before. So when it comes to keeping track of this, no one's time should be considered free. I did this by creating a coding system for everything I worked on — and not just me, but everyone who worked for me. Every task was documented and assigned a code, every dollar spent was tracked, all money in was accounted for. I called it "coding my way to cash" because I love a catchy name. And because it literally became the difference between me making and losing money.
Obviously, I didn't start making more money the minute I assigned job codes to everything. Oh, were it that easy! I had to then take a cold, hard look at the data generated and see what it all meant. Once I had a clear picture of where my money was going and how it was being generated, I was able to start making adjustments and corrections to how I ran my business. And believe me, I had to make a LOT of changes. I discovered that I wasn't exactly the big shot I thought I was, making money hand over fist. I was spending it too, plenty of it going unaccounted. And spending time that I wasn't accounting for. So once I fixed all of that, then what happened? Cha-ching! I finally had the profitable small business I wanted.
5 Tips To Maximize Your Pricing Strategy
How can a coding system help you?
- Coding your way to cash is your life raft to financial success.
- The coding system must be clear-cut and transparent.
- A job code must be assigned to each project.
- By coding your way to cash, you'll discover all the time and hidden expenses associated with servicing a client or producing a product.
Oh by the way, are you searching for easy steps to charge more without losing clients? Learn where you're leaving money on the table and discover simple costs to cut PLUS get productivity tips! And the best part is it's all FREE! Get our Simple Tricks right here!
Be Oh So Quotable This Week!
I always say running a business means the work never ends! Ain't that the truth? I bet your to-do list is a mile long! Make sure that the items at the top of your list are the things that relate to being more profitable. Everyone is so proud of being so "busy"...But Are You Making Any Money? Don't be too busy to focus!
Check out the summary of last week's business tips and motivational quotes from my Instagram page which you hopefully got to see in real time! If not, let's make sure we're following each other on Instagram!! So...here is this week's roundup of Instagram images of My Top Business Tips and Motivational Quotes.
Profitable Small Business – Tip #1:
"Profitability is where growth takes place." – Rush Limbaugh
Profitable Small Business – Tip #2:
"Profitability comes from loyalty, productivity, and having a character base from which to work." – Zig Ziglar
Profitable Small Business – Tip #3:
"Improving efficiency on the farm is not only a risk-reduction strategy, it's a profitability strategy." – Bill Vaughan
Profitable Small Business – Tip #4:
"Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals." – Jim Rohn
Profitable Small Business – Tip #5:
"Every effective winning strategy is mapped out by focusing on the desired end goal." – Wayne Chirisa
Let's talk! I'd love to hear how you built a profitable small business!
A profitable small business doesn't just happen. What's your advice on how to get there? I would LOVE to hear from you! Anyhoo...I publish these business tips and motivational quotes to get you fired up for your work week!
Oh hey, being profitable has a lot to do with time management, and it just so happens that we've got this fun little quiz to test your productivity. Are you a Vodka & Red Bull? A Dirty Dirty? Or a plucky Blue Sapphire? Find out which cocktail you are by taking our quiz right now!
P.S. Of course that's not all we've got! Searching for more tips about running a business?
Then definitely take a look at these:
I'd love to hear your ideas! So please comment below and then SHARE!
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