This mistake can cause a business to implode in under 1 year.
2 / 3 of businesses do not survive 5 years and I believe this is the number 1 cause.
I work with hundreds of small business CEOs and this is the biggest problem we see every day.
Here is the problem: CEOs chase 7 figures or more in Sales instead of 7 figures or more in Profit.
Here’s what I mean:
You create a business and you focus on selling selling selling. You create marketing plans, hire sales people, invest in a CRM to keep it organized, create funnels and track leads.
All of that is OK. If you are looking to create extra work for yourself and others.
But here is what business owners don’t do: watch the bottom line as closely as the top line.
Say they hit the 7 figure sales number. That’s good! Congratulations. However if they only keep 5% - that barely pays the taxes! 5% of a million is 50,000. THAT’S IT!!
Let me propose something different: shoot to sell half a million and work on keeping 10% - same 50,000 in profit but with way less work!
Next focus on making the same 500,000 and keeping 20% . That makes you $100,000. Now you got something to work with!
You see, the top line revenue of 7 figures is an EGO METRIC. It feels good to say it “I hit 7 figures in sales!”
But it feels even better to hit 7 figures in profit!
Here is what I tell my CEO clients: it’s not so much what you make in the business, is what you KEEP that is the gamechanger.
Once you figure out how to keep 20% or more – NOW you can work at getting more sales! Because you are efficient at keeping the money.
Diana