Small Business Deadly Sin

Do you get so caught up in the day-to-day activities of your business that you commit one of the deadliest small business sins?

Not Knowing If Your Business Is Making a Profit.

Knowing whether your business is making a profit or not could be the difference between thriving in your business and just barely surviving.  I don’t know about you, but I would much rather operate a THRIVING business!

The Right Kind of Income

I can not overly stress this point, it is NOT enough to be bringing in business income, it must be profitable income.  You may be saying that, “I just want customers walking thru the door”.  Or, you just LOVE hearing the sound of the cash register ringing up sales.

But have you ever stopped to think that some customers may be COSTING you money rather than MAKING you money?  Do you have a system for evaluating which of your products or services generates the most profit for your business?  Knowing this will help you determine what services or products you need to be promoting in your business.

A Salon owner’s coloring services or hair cutting services may be VERY profitable, so when your clients come in, then you should DEFINITELY offer your coloring or hair cutting services.  “Would you like fries with that burger?”  (McDonald’s has definitely learned The Art of The Upsell)!

The takeaway:

ALWAYS keep a pulse on whether your business is making a profit. 

You need a tracking system in place to determine how much income you are bringing in and how much it COSTS to make that income.  You MUST know which of your products or services are most profitable, and above ALL else, you MUST review your numbers on a consistent basis. 

One of the worst things you can do as a small business owner is wait until the end of the year to determine if your business made a profit.  That is like going the whole year without weighing yourself and then being surprised to learn that you gained 20 pounds!!