Last week we spoke about Members from the 7M Business Growth Model.
If you don’t get this right then you’re destined to work by yourself without a team. Your business can’t grow, because there is only so many hours in the day you as 1 person, can work. You can’t increase capacity. You have to work.
However when you do get this right then the team will run the business for you and make you even more money.
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The 6th Law: Money – The Repeating Profit Accelerator
If you don’t get this next part right then you’ll be limited in the way you can increase your revenues, and profit. Maybe you’ll be anxious and not sleeping at night, or possibly having no money how to grow the business.
Picture this: you come home from work, wondering how you will pay the invoices for this coming month. Sleep eludes you that night – again. Money is really, really tight, and you wonder how you will pay staff and your suppliers – just like last month and the month before that. It’s not a fun place to be.
I wonder how many of you have felt like this?
When you get this right though, you have the money that gives you the FREEDOM you desire. You’re sleeping at night and money is flowing into the business like a drain-pipe. You have the ability to pay staff and suppliers easily because you’re not stressed, because the money is sitting in your bank account, ready to be used.. I’m talking about….
The law of law of profits!!!! The Repeating Profit accelerator.
Notice this is Law #6, not the first one. Why is that? Why # 6, not #1?
Quite simply, you need to have all the others Laws aligned first, so you don’t waste money doing Marketing or Media.
I call it The Repeating Profit Accelerator, recurring income, that just continually drops into your bank account. It’s that important.
If you are not making enough money from your business then that needs to be fixed.
If you’re worried about profits, you need to fix that as well.
May I give you 1 really big tip, right here, and right now.
KNOW YOUR NUMBERS!!
If you don’t know your business numbers, how can you make quality decisions, or know what you can and can’t afford? If you don’t know your numbers then ask someone to help you know and understand them.
It’s something I spend a lot of time helping my clients with because it makes such a difference to their business. All of a sudden the discussion they have with their accountant is completely different. They understand what they’re asking, and the accountant can’t fudge the answer.
And one last big tip. Do you have a cashflow forecast? This one spreadsheet can save your business.
I gave the cashflow forecast spreadsheet to Dave and Katie and it literally saved their business. Dave and Katie run a very successful furniture business. Successful NOW!!!!
It’s a rolling 13 week forecast.
When they imputed the numbers, they kept getting a major blip, a major negative at week 11. They couldn’t understand it. When we dug deep into the numbers they realised they had a major bill coming up they couldn’t cater for in week 11. By having 10 weeks to sort it, as opposed to the next day or 2 day’s time, they had time, (with my help) to implement a strategy to sort out that major bill. And they did, but wow, was it touch and go. Phew. They now do their cashflow forecast religiously!!!!!
A common belief that Business Owner’s have when they first meet me, is that they must be the cheapest.
This belief means that they think customers are only shopping on price. They are looking for the cheapest product or service.
The reality is that only 16% of customers shop on price. The rest is value based.
Let me give you an example.
If people only shopped on price or looked for the lowest price in car’s we would all probably be driving a Suzuki Celerio. It’s the cheapest car currently on the market.
But we don’t, we all buy the vehicle that gives us the value we want at the price we are willing to pay to fulfil our needs. That‘s why some of us have SUV’s, or people movers, while others have sports cars or saloons.
“Money is the root of all evil and Business Owner’s are just being greedy”, I am often told. What rubbish, and where did that come from.
The Bible actually. But what the bible actually says is, The LOVE OF MONEY, is the root of all evil.
If money was evil, how come the churches and religious organisations are collecting so much of it!!!!!!
However, I believe the lack of money is the root of all evil. Look at homicides, drugs war, or domestic violence – all based usually on lack of money
Let me tell you about Steve. He owns a shoe shop. Steve is 6’ 2”, solid build, great smile that lights up a room with a deep gravelly voice. The ladies love him, much to the consternation of his wife.
When I first spoke with Steve he was working 7 days a week, 8 – 9 hours a day. The shop was successful, making him money, but he lacked time for family and friends.
Steve’s dream was to be able to free himself from working every day. And have time for him.
I showed Steve the Business Builder system that you see here and looks at the 5 P’s to creating wealth in your business. Because there’s only 5 areas that Steve needed to work on. The other 3 areas – the ones in red are results, which change as a result of influencing the other 5. In fact using this system will increase your PROCEEDS BY 46%, and your NET PROFIT by 61%, as it did for Steve.
7 years later, as a result of implementing the Peak Performance Business Accelerator PROGRAMME, which includes the 5 P’s Steve now owns 3 shoe shops. He travels the world. He is still making loads of money, £187,000 NET PROFIT, 2 YEARS AGO that I’m aware of, but most importantly, he has time for himself and he and his wife are travelling with their friends. Steve’s journey wasn’t easy, but because he had persistency and was consistent and resilient with his learning and implementation, he is now enjoying the benefits of his labour.
Money – Know your Numbers….
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Next week we’ll look at Mentorship – The Ultimate Leadership Creator
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An action step you can take today…
– Invest you time that helps you plan your next 90 days in your Business:
What: “7M Business Growth Roadmap – The next 90 Days”
Talk with me today so I can show you the Roadmap to doubling your net profit within 9 months!
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