BlogIt’s Hard to Win Without the Right “Stuff”

November 1, 2022by Donna McPherson
The greatest discovery of all time is that 
a person can change his future by 
merely changing his attitude.
-Oprah Winfrey 

 

Just as a well-built house starts with the proper foundation, a large or small business requires the right foundation based on profitability to thrive and grow. 

In other words, you must know how to make and keep your money; this is how you create profit! 

Below are four of the “right stuff” you must know and do:

#1: MONETIZE YOUR VALUE PROFITABLY

 

Successful entrepreneurs recognize that they are in business to make money. Those who do not get this crucial concept right from the beginning may not make it past the first year. 

It does not matter if it is a billion-dollar operation or one earning five figures. If you cannot monetize your value profitably and consistently, your business may not survive. And if you are lucky enough to get past “go” in year one, there’s a fifty-fifty chance of you not seeing year five. Please don’t take my word for it; check out the U.S. Bureau of Labor Statistics (BLS).

Companies that make money have the “right stuff” and, therefore, a better chance of thriving and growing because when the money is flowing, you can:

  • Pay yourself what you want
  • Be a more generous employer
  • Create loyal, long-term customers
  • Grow your company profitably
  • Have more impact and freedom

Big corporations have a board of directors and department heads such as CEOs, CFO, COO, etc. As a smaller company, you might have a team of employees and independent service providers. But does your team have the “right stuff” – expertise to support your vision?

Consider taking a hard look at your team to know what’s working well and where you might need an upgrade. Hiring experts with the “right stuff” can help you accelerate, even on an as-need basis. You deserve to have the right experts in your corner, also.

#2: UNDERSTAND WHAT YOU NEED TO WIN

 

While owning your own business can be exciting and rewarding, it is not an easy way to earn a living. You must have a take-charge attitude and an extraordinary level of perseverance to get the results you are seeking. More importantly, some of the most fundamental things you must get right are: 

The purpose of your business

  • Tip: Identify the problem you are uniquely qualified to solve.

People spend money to solve problems that they are unable or unwilling to tackle themselves. You must focus on what they need help with to provide your most viable solution.

Who your target customers

  • Tip: You will not be suitable for everyone, and everyone will not be ideal for you.

To provide the highest quality of products and services to your ideal customers, you must first know who they are to determine how best to meet their needs. 

How you serve your people

  • Tip: If you want to stand out over your competition, your products and services must uniquely meet your customers’ needs and be better than any other. 

The bottom line is if your target market does not believe that you can transform their situation into the outcome they want, they will not buy from you, and you will not generate the revenue you need for your business and income for yourself!

#3: CREATE YOUR PATH TO PROFIT

 

Whether starting a new business or acquiring an existing one, you must be clear about how your company will generate revenue and be profitable. It is how you will win in business; the sooner you know it, the better your chances of winning.

In my experience, most business owners are great at running day-to-day operations but do not understand the financial side of the business. However, the financial numbers are the guiding light of a company’s operations. Not knowing your numbers often leads to guessing and stressing. 

Here are some tips to ensure that you are taking all of your revenue off the table and turning them into profits: 

  • Sell products and services that generate the revenue needed to run your operations and pay you what you want.
  • Charge prices to provide the revenue you must generate to cover your company’s costs and achieve the desired profit.
  • Spend money only when and where required to obtain the resources you must have to operate efficiently and profitably.

There is more power in your numbers than you might realize. For this reason, you must set a numbers-based goal for your money with a plan to achieve it. 

#4: LEARN ABOUT YOUR INDUSTRY

Here’s what I learned from my former restaurant business –
I was leaving money on the table because of what I didn’t know!

 

As the saying goes, you don’t know what you don’t know. The lack of knowledge can hurt your business. It did mine, but thankfully, it was temporary.

Who knew that placing a dessert menu on the table led to more orders from diners than just asking them if they wanted dessert? I was a newbie and learned this valuable lesson from a veteran chef.

The more you know about your industry standards, the better you will serve your customers and your business. It will lead to more customer satisfaction and more money for your company. 

Here are some tips to expand your knowledge of the industry:

  • Find an experienced mentor 
  • Invest in education and training 
  • Subscribed to related publications 
  • Visit other successful businesses 
  • Hire a consultant with the expertise

Above all, know your success keys, get them and implement them. Knowledge is potential power until you turn it into real power!

 

by Donna McPherson

I believe everyone can achieve business success if they know what to do and then do it! My mission is to provide the knowledge and "know-how" to help business owners leverage their resources to grow their companies, create wealth and build a lifestyle they love.

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