Let's make some more money. Shall we? In this video,
I'm going to share with your five profit boosters for your business. As always,
before we get started,
make sure you hit the bell and you subscribe to our channel.
So you don't miss a thing. Welcome to powerhouse business on YouTube.
I'm your host, Carolyn Soldo. I'm a business owner, business scaling master,
and mom of two boys.
I love thinking big pushing boundaries and doing things differently.
Most of all, I'm all about achieving massive growth with ease.
And how do you scale your business by living the life?
You love go running a business. It's all about revenue.
It's all about making money at the end of the day, right? Yes.
You have a mission. Yes. You have a purpose and a big story to tell,
but if you want to run your business successfully,
you need to have the resources to do so.
And that means having the money and the time and the team and all those
things ready at your disposal. Most importantly,
you need revenue to reinvest in your business to pay your bills and to
pay yourself by revenue is not enough.
It really all comes down to profitability and I've seen many companies go
under, even though they were generating massive amounts of revenue because their
profitability was just not there.
So when you really look under the hood of a business,
you want to look at their profitability and how much money the business can
actually keep for its owners and itself to continue to grow,
expand, and really thrive.
A best practice for any business owner is to have a really smart money
management system and make profitability top of mind
and look at your profitability and then boosted of possible on a monthly
or quarterly, or at least by annual basis.
I have a very specific tactical way to manage and continue to
boost profitability in my business. And today I want to share that with you.
The first thing you want to log out is your P and L profit and loss
statement.
I can never believe if someone tells me that they're not looking at their P and
L if you're a business owner and it doesn't matter if you're making $10 a month
or 10 million a month, you need to be looking at your PNL.
I would say monthly, or have someone look at it.
But if you make 10 million a month,
hopefully someone else is looking at the P and L for you,
but it cannot be happening that you don't have a P and L and you're not looking
at it.
So you really need to fall in love with your numbers and really become familiar
and comfortable with them.
So pull out your profit and loss statement and let's take a look.
You've got the P and L in front of you. Yes. If not go get it right now. So not.
I do have your profit and loss statement in front of you.
I want you to look at every expense line item one by one by
one, and then ask yourself the three really important questions.
Question number one is what happens to my business. If I,
the expense completely,
what we lose the business would be make less money would be hurt.
What we did, it was customer satisfaction, really, you know,
cut down customer service, cut down quality of, of, of our program or services.
What would really happen? Ask yourself, Mike,
will you take a neutral stance and look at your business as almost like an
outsider and say, what if I cut this expense completely?
And you might find that some expenses can not be cut at all,
but there might be some things that you are spending money on that you really
don't need. And if you cut them, nothing will happen.
And those are the gold mines you want to find.
The second question you want to ask yourself is can we make more money with this
expense? Or are we making more money? Because we are paying this expense.
So is what you're investing in,
what the money is spent on actually making you more money. If the answer is yes,
then great.
And the third question you want to ask yourself is can we find an alternative,
can we replace this expense?
Can we do something to lower the expense by maybe choosing a new
resource, using a new software or a new system, hiring someone else,
outsourcing it, delegating it, or doing something else,
but what can be done to lower the expense,
which will then of course increase your profit margin.
So as you're going through your PNL,
take notice of where your money really goes and continue to ask yourself if
these expenses actually make sense for your business.
Now there's one particular area on your P and L. I want you to really focus on,
and that is your advertising expenses for many businesses,
especially if you are a service based company and your business funds online
advertising is a large expense in my business.
Advertising has always been the greatest expense all of them are.
And that's why we focus on that a lot and try to relieve either,
get more for money or reduce the expense of possible.
So I want you to look at your advertising expense and if that's a big chunk,
ask yourself, why is it so big? Is it making enough money?
And more importantly, how can we get more for our dollars?
How can we make our advertising more effective?
And that can be done in a variety of ways.
You could be diversifying your advertising, try a different channel.
So if you're advertising online and you have been using Google ads for a long
time, maybe try Facebook, maybe try YouTube, try something else.
Right. Also look at the effectiveness of your advertising.
How much are you spending per customer?
How much are you spending to make a sale? And again,
come up with strategies for you to make more from your advertising dollars.
Now you should have a really good understanding of your PNL.
And hopefully you'll find some things who can erase some things who can,
you know, put something else in its place. You have alternatives.
Maybe you have ideas for using advertising more effectively.
You might also be able to raise revenue,
but now is the time to do something else.
There's one more thing I want you to really look at.
And that is how you spend your time.
Most business owners don't use their time very efficiently at all,
and that's not just bad for your lifestyle and your stress and the
work life balance you have,
but it's also often times really bad for your profitability.
So let's put the profit and loss statement away and take a look at how you spend
your time. Ideally,
I would like for you to do a time study and for a full week,
write down what it is that you're spending your time on in half hour
increments, write down.
If you're working on strategic things on tactical things, on personal things,
if it's self care or family, and then at the end of the week,
look at your time study and really ask yourself what is happening with my time
and ask yourself some really important questions.
Number one is what would happen to my business. If I stopped doing,
doing certain things, what would happen with the business decline?
Would profitability go up? What would happen?
You might be able to find some things that you can literally stop doing
completely and nothing would change in your business.
The second question I want you to ask yourself is what would happen if you did
more or certain things. So when you're looking at your time study,
there might be some activities on that list that actually make you a lot of
money. It's not about whether you like them or not.
It's about how profitable they are for you.
So ideally pick out some activities and some things that you're doing right now
that make you more money that make you more profitable and consider doing
more of them. And then lastly, of course,
ask yourself how you can delegate more stuff or do less of certain
activities.
Mine might be some things you can outsource to someone who can do them even
better than you are doing there might know,
giving your time to do the things that make you more money, right?
That boost your profitability. So how you spend your time,
how you delegate and what you actually do has a major impact on your business
profitability. By the way, if you haven't asked me a comment in a while,
do that today, down below in the comments below the video,
let's have a conversation. I would like to know about you, your profitability,
boosters,
how you think you can boost your business revenue and your profitability at the
same time, are you spending your time in the right way?
Are there certain expenses and line items on your P and L you can cut,
reduce, or maybe use your average housing more effectively? Let me know.
That's have a conversation.
And if you haven't taken our business growth scorecard,
I highly recommend it.
This score card is going to help you analyze your business in the six key growth
areas.
And those are the areas I discovered after my company hit the inc five list of
America's fastest growing companies. So there are six areas.
And when you get to optimize these areas in your business,
you can't believe will grow and your profitability will grow,
and you will also be a lot more happy in your business.
The scorecard is completely free,
and you can take advice now by going to a business growth, scorecard.com,
it takes about 10 minutes. There are about 30 questions for you to answer,
and then you'll receive a completely customized report with your overall
score, as well as the score in the six key growth areas.
And you will notice immediately where you may have some blind spots where your
revenue opportunities for me are and what you can do instantly to grow your
business with ease and excellence. No stay focused on your goals,
because I believe that you are meant to bring your expertise,
to allow more people. And that's why profitability is so important.
If you liked this episode of chorus, give me a, like,
maybe share it with a friend or a business partner.
Make sure you subscribe to our channel and then come back again next week.
Thank you so much for watching. I appreciate you and take care.
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