How Much Is Your Business Really Costing You?

Too many times, solopreneurs create businesses that cost more money than the business is actually producing. Then, to add insult to injury, they let their pride, or misplaced optimism, or something like it, to continue to fuel the business even though it is not as profitable at all.

• You may love the idea that you have, but is it a business?
• You may love the business you have built, but is it profitable?
• After all, the sustenance of a business is the profit it makes… isn't it?

The questions are simple ones: 

#1 : Is your business profitable. Yes or No
#2 : Do you bring in more money than your business is spending to stay afloat? Yes or No
#3 : Can you show a legitimate profit at the end of the month after you pay yourself? Yes or No

If you answered NO to any of these questions above, read on…

Let's dig deeper… because there were decisions that were made long before the business was
unprofitable that created the state that it is in.

There are three primary questions that make up profit.

#1 : What is the cost and margin of your product?
#2 : What is your cost to market and promote your product successfully to sale?
#3 : What is the volume that you have to have for your product to produce the revenue that you desire?

Question #1 is all about positioning and the elastic nature of pricing.
If you notice, the packaging of your product is what influences what people are willing to pay for it.
Do you have credentials? How much media do you have? How many books have you published (print or digital)? What else is in the package?
What are you offering ultimately to the buyer – the bottom line end result your buyer is looking for? It is scarce, valuable and meaningful to the buyer?

Question #2 is all about the marketing channel that you choose.
PPC has a real daily cost. SEO has a real daily cost. Direct mail has a direct cost. PR has a cost.
Social media has a time cost. Remember that your time is valuable. Every minute you spend on social media has an associated opportunity cost.
The channels that you choose have a lot to do with the cost of sale that you will incur.
Whereas public speaking, free PR and media pickup have a cost but they have leverage-able value
if you know the sequence for leveraging non-advertising channels.

Question #3 is all about the effectiveness of your campaign and promotion to produce sales NOT Leads
In your promotions, set a clear goal and outcome in terms of sales not leads. Too many times we as business owners focus on leads and not sales. Leads are potential sales. Not sales. So focus on the sales and the actions that produce sales.
The channels that are working for everyone else may not work for you. You may have to experiment with many
channels until you find the one that works for your budget, resources and volume requirement.
Getting profitable is a matter of getting clear on the primary 3 questions and knowing all of your options.

If you have a business that is not as profitable as you desire it to be or you are looking to make your business even more profitable than it is it might be a matter of really taking a step back and looking at your business and what you are doing, how it is working and what can really be changed for the better.
The question is what is your business as you are running it now costing you? or profiting you? You might be leaving money on the table that a few adjustments could rectify almost instantly.

If you'd like to spend some time with me to help you identify those profit thieves and what you can do about it, click here now to complete your business strategy survey.
The survey alone will give you insight into what is working and not working with your business. After I receive your completed survey, we will review it together to help you find the profit potential hidden in your business.

Now is the best time for you to get clarity around your business promotion and operations. I have worked with businesses in just about every sector and your business (although it is special and one of a kind) may be sitting on the same profit thieves that plague most businesses.
Remove those leaks and the business can and will become profitable.
Complete your survey now, your successful 2011 awaits.

Til next time,
David Bullock