You Can Have a Profitable Business in Less Time Than You Think
Many of us think that it takes several years for a business to be profitable. But that all depends on how you define “profitable.” For some, the word means they’re rolling in dough. For others, the word means their business expenses are covered AND they have extra cash. Technically, if your business revenue exceeds your monthly expenses, your business is profitable.
So how can you quickly start making a profit in your new business?
There are 5 things you can start implementing immediately.
1. Develop a Reputation for Being Likeable and Reliable
When deciding whether to engage in business with someone, one important factor that people take into consideration is the quality of their relationship—especially in a service-based industry. Being likeable and trust-worthy go a long way in business.
When you are, people will naturally refer you to others because they trust you—they trust that you’ll come through AND that you’ll protect their reputation as the referrer.
So, it’s in your best interests to be developing a reputation for being likeable AND reliable.
2. Decide on a Business Model Based
When deciding on a business model, first decide how you want to serve others. And see if there’s a way to make it unique.
For example, if you want legal fees to be affordable for most people, you might consider a subscription-based model like Matthew Kerbis of Subscription Attorney.
If you can create a business model that keeps your costs low, you’ll make profit in your business much sooner.
3. Keep Expenses as Low as Possible
To keep expenses as low as possible, decide on the essentials. What do you absolutely need (a.k.a. can’t do without) to get your business up and running?
In other words—If you didn’t have X, you won’t be able to do business. Perhaps a beautifully designed website or logo can wait. Or a CRM program with all the bells and whistles.
Decide on what you absolutely need to get your business going and invest in those first. Once you start making a profit, then look at what to invest in next for your business.
4. Use Tools That Save You Time
That 4-syllable word that can make life so. Much. Easier.
If you save yourself time, then you can focus more on revenue-generating activities. Which equals more money.
When considering what tools to invest in that will save you time, remember #3 as part of your decision-making process.
5. Spread The Word
Remember all your elementary and high school friends from school, church, and basketball? Previous co-workers from your after-school jobs? Aunt Matilda and Cousin Joe?
Tell them. Let them know you’re on a brave, new entrepreneurial adventure and open for business!
If you’ve practiced point #1 throughout your life, it’ll be easier for people to help you in any way they can.
If You’re Just Starting Your Business, Remember This
When you’re starting a business, there are basically two phases:
- Phase 1: Before you’re awesome
- Phase 2: Once you’re awesome
If you’re in phase 1, your focus is to get your name out there. Practice #1 and #5 a lot while working on the rest.
And it won’t be long until you’re awesome.
Based on an excerpt from our BIZ/DEV podcast, Episode 48.