3 Steps to SUPER Profitable Months
Over the last few years, I’ve realized it’s not as easy as it seems to be profitable. Profitability doesn’t happen by accident. It doesn’t just fall into your lap. Profitability, in fact, is a very, very purposeful thing that all of us need to do in our businesses in order to see that profit come in.
Here are some tips that have helped me in my journey to profitability.
“I know where the money is going, I know what the expenses are going to be. I’m already aware of how it’s going to look and that feels really good to me because it’s not a surprise.”
Head to the website to listen to this episode or click “Listen Now” below!
In this episode Avani talks about:
- Her first experience with profitability as a freelancer.
- How the numbers of her first year took her by surprise.
- Her strategies to make 2019 and 2020 more profitable.
1. Use the “profit first” methodology
“Profit First” is a ladder where you put aside what you need first before using your money for expenses. Traditionally, you’re using your business money to pay for expenses first, and then pay yourself whatever is left. Check out Profit First to get more details on how to turn this around.
2. Make money your best friend
Get comfortable with getting into your bank account and looking at it. Look at it every day if you need to. Money needs to become your best friend. Sit down, be purposeful, map it out, play with the numbers, look at what is coming in, and know exactly how much you’re going to make in the upcoming month.
3. Use the chopping block
If there are things, team members, initiatives, or products that you’re paying for in your business that aren’t working for you, I recommend putting them on the chopping block. Just because they work for someone else or just because you feel like you need to do it doesn’t mean you should be doing it. Especially if it’s not producing ROI.