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Are We Making Money Yet?

How many times does a small business owner ask himself if he is really successful before slipping back into the daily grind of trying to make a buck. In many small businesses it is a daily ritual. “Why does it have to be this way?” Arguably money in hand is a clear indication of success learned from an early age. Parents often say, “If you do your chores your can have an allowance.” As we grow up and go into business our parents become customers and our allowance becomes revenue. Our completed chores are necessary product or services that customers want and will pay for. We are simply conditioned to respond.

Money becomes the symbol

Finding acceptance in the market comes from successful sales and building loyalty. Money is a symbol of that success and is a primary evaluation tool. More money equates to more market share at face value. Unfortunately pure revenue doesn’t take into account costs associated with production and distribution. Many small businesses simplify the relationship between what comes in and what goes out leading to short-term focus. Adapting our chore analogy, the child performs a function and expects immediate payment or gratification. The problem with this type of linkage is limitation creation. A business that operates for cash-now can’t build necessary supply chain relationships, grow larger customer bases, or operate with sustainability in mind. Just in time becomes the main business driver not growth and enhanced value. The result is decreasing revenues, unhappy employees, and inability to execute against corporate vision.

Birds in the bush are okay?

Where are the birds?

Where are the birds?

A paradigm shift in thinking leads to far more success than trying to cash out every day. Small business can benefit from strategic planning to leave birds in the bush rather than always trying to capture one in the hand. The use of a business plan, sales and marketing strategies rather than just tactics, and leveraging of partnerships are great ways to start building for the future. Limited budgets and high expenses are excuses rather than obstacles to overcome. In essence, the only limitation to success is within your own mind. How and why are up to you.

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