You may be achieving your goal for revenue generation and think that’s all you need in order to succeed. The real truth is, generating the revenue is only half the work. Rewarding yourself and your business with profits is everything! Making sure revenue is correctly used in your business to continue generating and growing your revenue takes work.
Often as entrepreneurs we become focused on the generation of the revenue and not the utilization of it. We believe the availability of profits means we can use them personally. When you first started your business, did you understand that focusing on the profits you wanted to make really could ultimately help your business grow leaner and faster?
Many business owners say things like, I want to create a six, seven or even eight figure business but they don’t really say, what they’ll have when they get there. There are a lot of costs that go into the generation of income and if not managed correctly, they can make $30M seem like zero. All of the hard work you put into your company can seem like it doesn’t even matter. Did you ever consider . . . if you knew you needed to make $250K in profits per year to support your dream lifestyle and family, you could end up with a real number you would have to make in your company to sustain this?
If you are taking money out of your company but ending up not having enough profits to sustain your company’s growth and take care of the tax bills each year than you really aren’t making enough profits to take the money you are taking from the business. There are percentages you should be watching and factoring into your calculations of revenue for your company to insure your expenses aren’t out of control compared to your profit generation.
Soluorient’s strength is that we use a combination of managerial consulting, cash flow management, profit tracking and percentage monitoring to help insure a company’s growth is sustained. We work with owners to understand the bleeds on their company that are keeping it from getting to the next level and we help owners design ways to maintain the health of their business while restructuring things so they can reward themselves with profits.