What is that one thing that will have the largest impact in your business. That one thing that will have the largest impact on your profit and that one thing that will get you out of a financial crisis?
Why am I so concerned about profits and money making. Well that is THE reason why businesses exists – to make profit. Sure, ideologically businesses are there to provide services, products and serve its customers. But how many businesses do you see in existence that provide all kinds of great products and service and make their customers happy and do not make any profit? The real answer is NONE!
If you are thinking that there some companies who provide great products and services but aren’t making profits, then its either a temporary situation that the business is in, or if they maintain this trend, they will soon go out of business. If however, it is neither of the cases then that business is,..well…out of business already.
Profit is the juice, the fuel, the gas, the food, the energy, the chi, the life force that keeps businesses operating. The book definition of profit is Income minus expenses, and to maintain a positive profit(i.e. NOT loss), which is also something that we are actually interested in, you need to have income more than expenses.
So what is that one thing that has the largest impact on profits? The answer is SALES, SALES, SALES and more SALES.
Let’s face it, you can reduce your expenses as much as possible, streamline the crap out of your business, but if you are falling short on SELLING, then you are in trouble. The only way to get your business out of a financial crisis, is to sell yourself out of one – and that is the bottom line!