Does Profit Still Come First During Crisis?
I know with each passing day things are getting tighter for a lot of business owners. Many businesses have been forced to abandon their primary offering and explore new revenue sources. Hopefully you have found some new ways to serve your customer base and generate revenue.
I had a business owner ask me recently if they should stop setting aside profit during this time. Money is tight and they felt like they needed every dollar to go toward their expenses in keeping the business open.
While this makes a lot of sense, we need to dig a little deeper to get to the root of the problem.
What we uncovered was this business owner was basing a lot of decisions on fear. While it's absolutely normal to have your emotions running high, we need to be careful not to react to them.
Long story short, we want to keep setting aside profit. Why? Because it's the lifeblood of your business!
Not to mention setting it aside (and using the Profit First system with your bank accounts) will help you know when things are tightening. You'll notice a strain on one of your accounts and can adjust accordingly. By funneling all money toward your operating expenses account, you lose the clarity you once had.
If push comes to shove, you still have the cash in your Profit account. However, it's important you don't count on it! This is a last resort bail out if needed (the very last resort).
Ready to make your business permanently profitable? Let's chat. Click here to book a free profit maximizer session.
Craig is a Certified Profit First Professional who is passionate about helping service based businesses become permanently profitable.