Want your company to be more profitable?
Almost all business owners are constantly working to make their company more profitable. And that’s a good thing, right?
It probably is, as long as you achieve it morally and ethically.
But is it worth it?
Here Are 12 Benefits of Running a More Profitable Company
These benefits may remind you why you went into business in the first place. They may also help you decide if you’re ready to “up your game” to achieve better profitability this year!
More Profits Ease Financial Pressures
1. More profits mean you'll be able to pay all of your bills and taxes on time.
Being able to pay all your bills and taxes on time will certainly make a huge difference in your outlook on life. It would also make life easier when the phone rings and on the day before payday!
2. More profits enable you to get out of debt
As you attain greater profits within your company, eliminating debt will have a huge impact. Think what it would feel like to be debt-free!
No interest, no late payment penalties, and not having to feel like an indentured servant – continually working to pay off debt.
Wouldn’t that be a wonderful load “off your back?”
3. More profits mean a less stressful life
Do your worries about your financial security and future keep you from resting easily on nights and weekends?
When:
- You’ve set up insurance policies to cover common risks and emergencies
- You have set aside a “war chest” as a reserve for lean times
- You have carefully considered and prepared a long-term strategy for your company
- You have documented a financial plan (aka a Budget) for the next twelve months and monitor and course-correct throughout the year...
- Your company is running like a well-oiled machine and creating consistent profits
…I can guarantee that you will experience a new and profound sense of financial security. Then you'll be able to take a deep breath and (finally) relax!
More Profits Improve Work-Family Balance
4. Increased profits can free up the TIME you want to spend with your family (and in the activities that renew YOU)
When you’re struggling in your business and NOT being profitable, it can be tough to create time for your family and yourself. It is so easy to get caught in the “Work more!”, “Work harder!” mindset – thinking that it’s the best way to get ahead.
When you create the time to work smarter and acquire the skills to run a more PROFITABLE company, you can stop that never-ending hamster wheel.
It CAN be done. (Hmmm - What WILL you do with that extra time?)
5. Increased profits mean you can PROVIDE your family with the home, activities, and perks you intended when you started your business
What’s on your dream list for your family? A lovely, welcoming home? College tuition? Beach vacations? Boats? Mountain climbing? A rustic cabin in the woods? Travel to exotic locations?
When you're the owner of a profitable company, you get to decide which of your dreams can become your reality! Don't Forget About YOU!
6. More profits give you the freedom to make “arrangements” for your personal financial future
Unfortunately, even business owners who run flourishing companies sometimes overlook the personal financial side of their lives. The “work until I drop plan" is NOT a smart strategy!
Independent business owners need OUTSTANDING profitability so they can earn enough to be able to:
- Set aside and invest significant funds for their future financial freedom.
- Acquire insurance to take care of their families in cases of disaster, disability, or demise.
7. Increased profits make it possible to schedule regular time to work ON (vs. IN) your company
If you’re NOT doing this, I can almost guarantee that you are not very profitable! Profitability requires thought, strategy, and planning. Enough said on THAT topic!
8. More profits make it possible to have a Business Coach or belong to a Mastermind Group
Of course, when you’re not very profitable, it’s easy to believe that you can’t afford a coach or mastermind group.
In my experience, the cost of business coaching or belonging to a mastermind group is paid back quickly and many times over.
A coach or mastermind group is NOT a luxury! If you’re serious about profitability, figure out where you could use some help, and start looking for a coach or mastermind group.
More Profits Make it Possible to Set Aside Time for Others...
9. More profits enable you to create challenging and rewarding jobs for your employee and contractor teams
Your success will rest, to a large extent, on the enthusiasm, interest, teamwork, and quality of these team members.
Your team can lighten your load and help you grow your company. Team players with challenging and rewarding positions participate in your company to create a triple win – for them, for your clients, and for you.
10. Increased profits mean you can confidently (and honestly) present yourself as a successful, knowledgeable business person
As you become a profitable business owner, you acquire a “boatload” of business skills. Those include how to understand and make decisions based on your internal financial information.
Your journey to profitability means you will have achieved the expertise that will allow you to be an esteemed and contributing member of your local, state, and national communities.
11. Increased profits make it possible to contribute the amounts you would like to your favorite charities
What organizations do you currently support? Or do you want to support? How would you feel if you could bestow two, three, or even ten (!) times as much to them as you currently do? (Pretty good, I'm sure!)
Running a profitable company means that you and your company can have a greater impact on the causes you support. It’s a heartwarming benefit...
12. More profits give you the expertise to mentor others needing help
A Master is someone who has passed through many steps of learning. Masters have often exceeded, upgraded, or set new standards for commonly accepted best practices.
As a successful and profitable business owner, you ultimately enter a career phase typically referred to as “Mastery.” You may choose to mentor another young business owner or someone in your local builders’ organization. Alternatively, you may decide to teach classes – or share your expertise by becoming a consultant.
People Also Ask
FAQs (Frequently Asked Questions)
1. What does it mean to run a more profitable company?
There are many short-term and long-term benefits to running a more profitable company. The logistics, however, center on increasing revenue, reducing costs and managing resources efficiently to maximize profitability.
2. How can I increase profitability in my business?
Increasing profitability can be achieved through strategies such as improving operational efficiency, increasing sales, reducing waste, and optimizing pricing strategies.
3. Why is profitability important for a business?
Please look through the various benefits of running a profitable company outlined in the blog article above. The importance extends far beyond having more money in the bank!
4. What are the benefits of running a more profitable company?
Running a more profitable company leads to less stress, living a debt-free life, more time to spend in leisure activities and with your family, the ability to provide your family with "the better things in life," future financial security, time to work ON your business, the ability to engage a business coach, the opportunity to reward your employees, the ability to contribute to your favorite causes, the option to attend conferences and mentor others.
5. How can I analyze the profitability of my business?
Analyzing profitability involves understanding and regularly monitoring your financial information.
6. What role does cost management play in increasing profitability?
Effective cost management involves identifying and reducing unnecessary expenses, negotiating better supplier contracts, and optimizing operational processes to improve profitability.
7. How can technology help improve profitability in business?
Technology can enhance profitability by automating routine tasks, improving data analytics for better decision-making, enabling online sales channels, and enhancing customer relationship management.
8. What are some common challenges in improving profitability?
Challenges include market competition, economic fluctuations, rising costs, ineffective pricing strategies, and operational inefficiencies that impact profitability.
9. What strategies can small businesses implement to boost profitability?
Small businesses can focus on diversifying revenue streams, improving customer retention, reducing overhead costs, leveraging social media for marketing, and investing in employee training.
10. Where can I find more resources and guides on improving profitability in business?
Additional resources and guides are available on the Build Your Numbers website.
Better Numbers = Better Business
At Info Plus, we know that reliable day-to-day and month-to-month numbers are the cornerstone of your financial success.
For project-based businesses, a job costing reporting system is how you discover which jobs make – and lose – money. When you see that info, you can track down problems and resolve them.
Don’t let that internal wall of “TOO BUSY TO CHANGE” stand between you and what you could be achieving and receiving from your company...
Learning how to use the right numbers to run a profitable, successful business is a choice. Moreover, it’s a choice that only YOU can make!
That’s why we've created the Construction Accounting & Management Program (CAMP). This program is specifically designed to meet the needs of super-busy construction professionals – like you. To see how to run your construction business "by the numbers," check it out!
NOTE: If you liked this article, you'll also enjoy Job Costing Increases Profits.
Customer Praise For Diane Gilson, Info Plus Accounting, and BuildYourNumbers.com
⭐⭐⭐⭐⭐ From the Intuit FindAProAdvisor website:
"The training Diane does in CAMP is the best I have found. I have worked in QuickBooks for 20 years and she still taught me how to use QB better. I specifically liked how she explains how QB works in the background and how all the lists and information entered work together. The response time was quick when I had a question and help was provided beyond what was expected."
See More Customer and Client Comments