The biggest cause of business inefficiency is variability. The more services you provide to a wider mix of customers, the more variability you have, and the harder it becomes to provide extraordinary and consistent services.
A big note here: there is a possibility that you will not have enough money in your accounts to pay bills or pay yourself what you need to make. This should be a major wake-up call. When you don’t have enough money to pay your bills, it is your business screaming at the top of […]
and if there isn’t enough money left for expenses? This does not mean you need to pull money from the other accounts. What it _does_mean is that your business is telling you that you that you can’t afford those expenses and need to get rid of them.
Accountants define profit differently than entrepreneurs. They point to a fictitious number at the bottom of an accounting report. Our definition of profit is simple: cash in the bank. Cold. Hard, Cash. For us.
If you’ve always been searching for some type of profit in your business, this is going to help you get it. Instead of finding profit at the end, Profit First, gets you to take it at the beginning and live on a good business budget.
If disproportionate results come from one activity, then you must give that one activity disproportionate time. So, ask yourself what is the single service that is most profitable for you? Why aren’t you selling only that service?