Every business is built on selling a product or service to people who have a need to be served or a want satisfied. Your ability to solve your target customer's problems better than your competitors is how you maximize sales and profits. Those who do this well consistently earn premium profits. Those who don’t have issues with their business model reflected in their inability to deliver their solutions at a price that earns them a profit.
The failure to consistently earn the money you should means trouble with your business profit model.
The biggest problem in small business is the failure to consistently earn acceptable profits. Fail to consistently earn acceptable profits indicates a business model problem? You know, without a doubt, you have issues with your business model any time you violate the seventh organizing principle in business. Each month and year, you fail to generate a business profit from your revenue stream; you know you have issues with your business model for making more money.
Business model failures most often have their origin in failing to clearly and precisely define your who, what, when, where, and why in the light of the 6 P’s as they relate to earning a profit. Allow this to suck all of the cash out of your savings, and you will sink your business.
What makes owning a highly profitable business one of the most difficult challenges in the world is that you can have each of the 5 W’s + H solved but still lose your business if you fail to convert your profits into predictable cash flow with reserves in the bank
If you’re a startup, you need to move swiftly and do it without spending too much cash as you figure out your recipe for success, or you will be out of business before you’ve begun. You protect this from happening to your startup by not hiring employees before you need them. The more you can do yourself or hire independent contractors to do, the more you can protect cash until you earn profits. Spending money on people who don’t earn you a profit is a costly mistake for every business.
If you’re an established business, you still need to think and move quickly if you are going to remain profitable. The key to earning higher profits is always be experimenting and refining. Think, “fail fast.” Not everything you do will work out as planned. If you are going to fail, it is best to fail fast to know where you need to define further, refine, and fine-tune what you have to do to nail down your business profit model.
The key to maximizing your sales and profits lies in the learnings and insights you develop for your business as you unlock each of the seven organizing principles that will make your business a profitable business. Every business is built on selling a product or service to people who have a need you can serve or a want you can satisfy. Your ability to solve your target customer’s problems better than your competitors is how you maximize sales and profits. The bottom line for all business models is to shape your offer at a price that earns you a profit.
You best do this means by being 100% accountable for the decisions you make and actions you take; if you fail to hold yourself accountable, any value you create for your customers will come about by chance. The problem with things happening by chance is they are next to impossible to replicate.
Connecting people with the products you make and the services you provide becomes more difficult when you’re in the dark on any one of the seven organizing principles for doing great business, particularly when your revenues aren’t covering your costs.
When the profit principle is violated, you expose the heart of your business that pumps the cash through it to the fatal flaw for any business. Run a business without profits; you violate the most fundamental laws of business. Do this for too long, and your ability to deliver any value evaporates, and your business will not survive.
Are you ready to improve the performance of your business model to make more money?
If you have shrinking profits and struggle to hold onto cash, take the “free” Business Profit Stage Assessment to learn how well your business profit model works for you. Click here below to take this no-obligation business assessment to confirm which of the ten core money-making dimensions in business is keeping you from earning the money you should.
Upon completion of the assessment, you will receive a BusinessCPR™ Profit Stage Profile showing you where your business model is working and where it is failing across ten foundational money-making stages.
Is your business model performing as it should?
If you have shrinking profits and struggle to hold onto cash, take the “free” Business Profit Stage Assessment to learn how well your business profit model works for you. Click the link below to take this no-obligation business assessment to confirm which of the 10 core money-making dimensions in business is keeping you from earning the money you should. Upon completion of the assessment, you will receive a BusinessCPR™ Profit Stage Profile showing you where your business model is working and where it is failing across 10 foundational money-making stages.GET YOUR STAGE