If you intend to succeed in business today, you need to know how to make a profit. If you already know, you can appreciate that making a profit is easy only to those who’ve never had to do it. Admittedly, there are exceptions, such as happened in the years 1995–2000. That period came to be called the dot-com bubble – after the bubble burst. Interestingly, a big reason for the crash of many technology stocks at the end of this period was companies taking advantage the euphoria involving new Internet businesses that enabled startups to go public without a profit, or, in some cases, without even having income.
The crash resulting from the dot-com bubble popping is the most dramatic example of the dangers involved with buying market share at the expense of profit, an obvious case of not knowing how to make a profit. Having worked with more than 130 small business clients, I found a lot of their profit problems come from not understanding their financial reports.
I’ve since observed many small businesses who felt that they could buy market share and raise their prices later.There are numerous problems with this if you are a small business owner or manager. The most obvious is that, unless you have a very specific niche, you’re going to be competing with companies better able to sustain loses over a longer period of time. Another is that if you do have that narrow a niche, is the market large enough to support the level of sales that you need to be profitable? And third, does your product or service solve a problem or deliver a desired experience important enough to your prospective customers that they will actually spend their money to buy.
You don’t need to be an accountant or financial planner to succeed in business. But you need to know how to make a profit, consistently, repeatedly. As most small business owners I’ve worked with do not have a strong background in business finance, I encourage you to check out my friends’ book, The Path to Engineered Profit.I have worked with both Robert Elliott and George Whitfield on consulting jobs. I’m impressed with how much they care about their clients.
Robert and George wrote this guide to provide much needed basic foundation on planning and managing for profit. Personally, I like being able to ask questions when I’m not clear on a new concept so I recommend you also consider their special offer on one hour of consulting – if you choose to buy their Guide.
My first Kindle eBook, How Relationship Selling Rewards Small Businesses, went live on April 24, 2012. https://amzn.to/2BaP2AH I've lived a lifetime of service and spiritual search so it's natural for me to incorporate these attitudes into my work. I believe that selling and marketing are spiritual service when done with a heart-centered, relationship selling approach. All of business success comes down to building strong relationships.
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