I believe the word profit has a bad rep and many business owners have a scarcity mindset around it.
They equate being profitable to being greedy and no wonder we constantly see examples in the news and on social media about corporate profit on the backs of people and planet.
As a result, many businesses, especially in the health and wellness industry, do not want to be seen as “profitable.”
Unfortunately, this mindset leads to business owners not pricing their products and/or services for profit, lack of planning for profit and if they do happen to be profitable, plowing profit back into their company.
This is creating burnout and financial stress.
When I guide business owners on how to put their profit first, I am not asking them to put their profit before people or the environment.
I am simply asking them to reframe how they run financial systems in their business.
Business owners are taught sales-expenses = profit. This has set businesses up to constantly chase sales only to end up with increased expenses and profit being an after thought on non-existent.
As a result, business owners are constantly taking what is “left over’ as their pay. It is what I like to call the pay yourself last syndrome. By rearranging the equation to sales – profit = expenses we are buying into the primacy effect – i.e. what comes first gets done.
The simple act of opening a business savings account, labeling it PROFIT and consistently putting 1% of sales into this account on a regular basis will start you on your way to making profit a habit not an event.
Remember your clients want you to be profitable because you are in the business to serve them, and you can’t serve them from an empty bank account.
Yours in good financial health,
April
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