As a small business owner or operator you know that growing in size, quality, service and impact requires resources. One of these resources is money. And I am here to tell you that you do not need to run to the bank just yet. Look at profit first.
Profit is the fuel a growth business needs.
When focussing on profit it helps to have some principles to shape our thinking and attention.
Here are 4 rules we use ourselves at Genesis Home Technology Architects when we look at profits (picked up from Chris Guillebeau who will have gotten it from some other generous soul):
- Think DEBT CONTROL: Hang on to your wallet and only spend money on what grows your business.
- Think VALUE: Price your product or service in relation to the benefit it provides, not the cost of producing it. (more on this in Pricing 101)
- Think SIMPLICITY: Offer customers a limited range of prices and offerings.
- Think SCALABILITY: Get paid more than once for the same thing or from the same customer.*
*Building up trust is the secret ingredient here. Think long-term customer relationships, service contracts and upgrades.
Small businesses with BIG ambitions all require FOCUS on what matters.
In every stage of the game.