Small and Micro Business Profitability – Don’t Be Timid!

So, we are almost 50% through the 2012 performance period for our businesses. How’s it going…?  Where are you performance-wise as compared to your written business plan?  Do you have a written business plan?  Do you need to take any calculated corrective action to get back on course to finish this year with a great result?

How is revenue looking and, more importantly, what does the profitability picture look like?  After everything is paid for, how much is left to reinvest in the future of the business?  After all, we are in business for one primary reason as owners, managers and employees, and that is to make a profit.

Many of our new clients seem timid about making a profit.  They are not comfortable with the fact that they are earning income that can be used for a multitude of purposes.  Profit is not a four letter word, it’s a gift and the result of your hard work and heavy lifting!  Bask in it, enjoy, appreciate, thank your customers and your valuable service or product!  As part of our consulting and coaching process we help business owners and their teams to understand that profit is a beautiful thing and that there are many ways to improve the profitability – it’s one of our core business services and our aim is to return 3-5 times our fee to you in the form of healthy income levels.

Lets meet for coffee or talk on the phone to discuss how your business is doing, from a profitability standpoint.  Perhaps some objective and external coaching and guidance would be helpful to you.  We are happy to help if it makes sense for your business!

All The Best,

Dennis

 

The Critical Importance of a Business Plan

Congratulations! You have taken a step that many people dream of: you’ve started your own business. The marathon has begun.

In the grand scheme of business operations, this is the easy part. You’re excited, motivated and enthusiastic. You have great tunes on the iPod and crowds of supporters running alongside you and waiting for you at the finish line.

Four or five miles into the race, however, you feel a twinge of pain in your side. You begin to wonder, “Should I stop? Am I really cut out for this?”

Your friends seem gleeful and focused as they push forward promising to meet you at the tape.
In your head, you hear the words of a close confidant saying, “There was a reason I urged you to train before attempting to run a marathon.”

There are the few blessed ones who finish the marathon with little to no preparation, but, the vast majority of us surrender to fatigue long before the 26th mile.

It is not much different in the business world. Many start-ups launch quickly and dynamically–and burn out just as abruptly.

Preparation, planning and balanced growth are crucial to increasing your chances of success in business.
If you did happen to launch quickly out of the gates without a plan, remember two things:

1.) You are not alone.
2.) Seeking guidance from a professional management consultant is a great way to keep your business on track.

One major difference between running a marathon and running a business: once you’ve started the race, you can’t go back and get the training you should have had. Not so in the business world.

If the business you’re running is causing you pain, take a step back and assess the root causes. Are you overwhelmed with work and wondering if you should add staff? Are you getting leads but not closing sales? Are you doing great work and keeping clients happy, but still struggling to stay in the black?

Take some time to think about it, and take note of what you conclude. In an upcoming post, I’ll share a complimentary business planning checklist that will help address some of these challenges, and help position your business for success.

Our Clients Say…

"Paradigm Solutions provided knowledgeable and practical management consulting services to Fauquier County which measurably contributed to streamlined and more efficient processes. Paradigm’s guidance was invaluable in meeting the challenges of declining governmental revenues and increased demand for services."

Terry Nyhous, Chairman
Fauquier County Board of Supervisors