Hey, I'm Carlotta Thompson, and you're listening to Protect the Profit podcast.
This podcast was made for entrepreneurs like you who want to learn how to protect
the profits in your business from the government, from outsiders, and, yes, even
yourself off with the IRS to help business owners just like you.
So let's figure out how I can help you keep more of your hard earned money.
One of the biggest mistakes I see in established business owners is the fact
that they are not protecting their profit from others.
Now, what does this mean exactly?
So as a business owner or as a person in
general, we're always getting pitched an offer.
OK, whether it's an ad you see on TV, an ad you see online, someone in person
asking you to buy something, we're always getting pitched an offer.
And we are as we're growing our business,
we are not protecting our profit from those outsiders.
We're simply buying what we think we need to get to the next level.
Right, to get that ROIC.
So one of the things that you need to focus on as you're growing your business
is protecting your profit from all of the things that people are offering you and
focus more on your profit than you do your gross receipts.
So one of the things what when you get over that five hundred thousand dollar
million mark, you start focusing on growing your gross receipts as fast as
possible and you quit thinking about profit.
So one of the things I see out of my business owners that are making
two, three, four, 10 million, 50 million dollars is their profit percentage is not
where it should be for the amount of profit they're making.
Their focus has been on the gross
receipts, but not on the profit of the business.
So let me give you a personal example
that's personal to me, because as I've been selling my business, I've
seen that I kind of fell into that trap a little bit.
And so over the past couple of months, I
have brought down my business, my profitability per client, because that's
kind of how our business is made, is we're a service based business.
So I can break down the profitability per client.
And I determined which of those profit
centers were actually costing me money and I was actually losing money on them.
And so I always, in my service based
business, want to focus on having a 30 percent profit margin.
Does that always happen? Absolutely not.
That's why we're always having to review and see what is it that is costing us more
than to give us that 30 percent profit margin.
As you're growing your business, I want to challenge you to focus on your profit just
as much as you do your gross receipts, because if you are growing your business
and it's no more profitable than it was when you were a lot smaller, then there's
no point in growing that business because it's just a larger business,
which gives you much more to deal with than the smaller business.
And if you're not making any more money,
then there's actually no sense in doing that.
We want our businesses to be profitable so that we can give back to others, serve
others, or so we can become wealthy ourselves and
create generational wealth for our family.
So there's usually a multitude of reasons why you are start, why you started your
business, why you're growing your business.
And a lot of business owners think they
can outrun the tax bill or the or the cost of doing business or this or that.
But if you will focus on those things, you
actually can cut the tax bill, which for every dollar you cut your tax bill.
That's like having to earn seven dollars in gross receipts.
So keep that in mind.
You can cut your cost so you can no longer provide a package or a service.
It's costing you money.
So if that increases your bottom line, that's going to help your business.
And then also
don't focus all of your efforts on those that gross receipt from because that gross
receipts line is simply how much you brought in.
But you've got to see how much that cost you.
I have lots of business ideas this year that they were in Facebook ads and the
Facebook ads, you know, increased their their numbers, their gross receipts.
But when they broke it all down and they realized, OK,
you put a dollar in, you, you get two dollars back out.
But
that's a dollar of profit. Right.
But then I've got to come in and I've got to think of how much it costs to provide
that service, how much it costs in refunds, how much it costs in bank fees,
how much how much did making that dollar actually cost me?
Because as marketers, you know, a dollar in two hours.
That sounds great, but is it really that great?
Did I break even on that?
Do I need to increase that offer or do I need to increase the price of that offer?
Or what do I need to do to protect my profit from.
Others and actually increase the profit.
Loving the text,
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