The Business Edge Blog

July 31, 2012

7 Keys to Success for Business Owners – Part 3 – The Profit Plan

The Profit Plan –

How do you know if your business is going to make money this year? How do you make sense of all the numbers? Maybe nobody warned you that this is a big part of running your own business. How do owners “run their business by the numbers?” Doesn’t an owner need to be there to know what’s really going on?

A fellow coach had a client who caught someone stealing food from his restaurant when he was living 1,800 miles away because he runs his business by the numbers. He noticed a dip in his gross profit margin and installed cameras that caught the thief red-handed.

Not sure what a gross profit margin is or how to calculate it? Don’t worry, most other business owners don’t know the answers either. Some clients are near tears as they talk about how dumb they feel about their business numbers and that they “can’t get it.” What a bunch of hooey! Business owners are not stupid. Nobody ever took the time to teach them in a way they could understand and relate to.  For most owners the numbers just create more confusion and stress. It’s like learning a new language and here you are staring at the answers on your financial statements but something gets lost in the translation from your accountant’s lips to your ears.  My clients become comfortable with their numbers as we work together.

Do you know how much money you are going to make in your business this year? Do you know if your business was profitable last year? Do you know how to make a profit on purpose?

Give yourself some breathing room and start planning beyond today, this week, and this month. Let’s start looking out at the next 12 months with confidence that you can reach the goals you have set for your business. This is The Profit Plan.

Are you ready to get started?  Share your comments below on your business numbers.

Until next time – Remember to mind your business!

Holly Hanson
Licensed Professional Business Coach
The Business Edge
The Headlights and Guardrails for Your Business

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