Hi, this is Jennifer Dawn with Profit Plus Advisors, and one of the most common questions that I receive as I’m taking people through our Profit Plus Program is this:
“I’m working so hard selling every month, bringing in new clients and revenue as fast as I can, but it seems like no matter how hard I work or how much I sell our expenses are always higher. What am I missing?”
I hear this all the time and want to dive a little bit deeper into this question because so many entrepreneurs face this. As we initially start our business, we’re selling, selling, but then as they start to grow what happens is that our sales increase, but then so do our expenses. Then what can happen is the expenses actually start increasing at the same rate or faster than the sales. Even though we’re selling, we might even have millions of dollars of revenue coming in, we’re not seeing anything on the bottom line.
So, what are you missing?
You’re missing a cash management system. If you don’t have a system in place to really manage your cash, you are almost certainly losing money. A solid cash management system ensure s you’re always focused on making every dollar that comes into the business work for you. It also will help you to operate lean and mean, with automated procedures, and efficient processes. Plus, keep those expenses from getting out of control.
This is really and truly is the missing piece. Understanding your numbers, not being afraid to look at them, having a rock solid cash management system in place, so that every dollar is working for you, and always making sure that things are running smoothly and really focusing on automation.
Imagine right now if you look at your payroll, I don’t know how many people that you’re paying, but if you replaced some of those warm bodies with automation, how much money would that save you? How much more money would that put in your pocket at the end of the day?
But as entrepreneurs, we’re often so busy selling, and just trying to make ends meet, we kind of overlook that whole automation piece. But when you do the work the implement a cash management system, and really start to look at your profitability, you can’t just skip the automation piece. And it becomes a very, very important part of that puzzle, so that you’re not just working to sell all the time, and never showing any money at the end of the day.
What’s Next: Do you need help? Schedule a call with a Profit Advisor. Our complimentary one-hour session is the first step towards having a financially solid business. Schedule a call today.