Is your company profitable?
It’s the time of year when hundreds of thousands of U.S. business owners are looking at their prior-year financial results to determine if their business was profitable.
If you’re one of those business owners, it’s worth taking a moment to evaluate your success, and ask yourself: “Am I exuberantly happy? Somewhat happy? Meh? Or wishing that I had not even looked at the results?” As well as, “Am I successful? Am I profitable?”
Regardless of your answer, sometimes it’s good to think deeply about what you COULD be achieving if you were running a VERY successful company.
- Yes, it IS do-able. Many of your peers are running profitable companies!
- No, it’s not necessarily easy – because you’ll have to make some changes to get there.
Is it worth the effort of making those changes? Take a look at what you could have, and do, IF you run a successful, profitable company.
These questions 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!
Ease Financial Pressure Within Your Company
1. Are you able to pay all of your bills and taxes on time?
If not, a more profitable company will certainly make a huge difference in your outlook on life. It would also reduce your overall stress levels when the phone rings, and on the day before payday!
2. Have you achieved a debt-free status?
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. Do your worries about your financial security and future keep you from resting easily on nights and weekends?
- Your company is running like a well-oiled machine by creating consistent profits.
- You’ve set up insurances 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 budget) for the next twelve months, and monitor and course-correct throughout the year…
…I can almost 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.
Improve Work-Family Balance
4. Are you able to spend the time you want 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 time?
5. Are you able to 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 are the owner of a profitable company, you get to decide which of your dreams can become your reality!
Don’t Forget About YOU!
6. Have you made “arrangements” for your personal financial future?
Unfortunately, even biz owners who run flourishing companies sometimes overlook the personal financial side of their lives. The “work until I drop” strategy is NOT a smart strategy!
Independent business owners need OUTSTANDING profitability so they can earn enough to be able to:
- Acquire insurance to take care of their families in the event of disaster, disability, or demise.
- Set aside, and invest, significant funds for their future financial freedom.
7. Have you scheduled specific days to regularly 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. Do you 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.
Take Time to Consider Others
9. Have you taken the time to examine and 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. When you’re “out and about” in your community, are you able to confidently (and honestly) present yourself as a successful, knowledgeable business person?
As you become a profitable business owner, you will have acquired 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. Can you contribute the amounts you would like to your favorite charities?
What organizations do you support? Or 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 am 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. Have you developed the expertise to mentor others who may need help?
A Master is someone who has passed through many steps of learning. They have often exceeded, upgraded, or set new standards for commonly accepted best practices.
As a successful and profitable business owner, you will ultimately enter a phase of your career 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.
Better Numbers = Better Business
Don’t let your internal wall of “TOO BUSY TO CHANGE” stand between you and what you could be achieving, and receiving from, your company.
Learning how to run a profitable, successful business is a choice. Moreover, it’s a choice that only YOU can make!
At Info Plus Accounting, we know that reliable day-to-day and month-to-month numbers provide what you need to achieve financial success.
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. If you’d like to learn how to understand and run your construction business “By the Numbers” check it out!
And if you enjoyed this article, you’d also love, 5 Ways To Use Job Costing To Increase Gross Profits