In the last 18 months, I have been focused on shifting the conversation that I have about building a business in the marketplace to ensuring that the business you build is profitable. Truthfully, in my own life I’ve decided that being in a business that doesn’t serve me is not what I desire. I’ve started to get really focused on what it takes to not only move my needle but to move the needle towards profitability.
You see, when your business is profitable, the rewards far outweigh the risks. And, you’re able to effectively contribute to other households, starting with your own. Now, it’s clear to me that most business owners (there are 28 million in the US) haven’t figured out how to be profitable, which is why some staggering 89.19% of them are not even generating $100,000 a year.
If your business has ever made six figures in a year, you know that $100,000 is almost like poverty. You’re the bottleneck because you can’t afford to hire a team and learn how to scale your business, and you’re likely embezzling from your business because you’re not making enough to pay yourself a salary and keep your business running effectively.
And truthfully, profitability is the first step. So many business owners like Sabina, whom I’m featuring in this week’s episode of Incredible Factor TV, are trying to figure out what a profitable business owner looks like and how they show up in the marketplace. Considering I am literally at my annual training event teaching Positioned to Profit, I couldn’t be more excited to answer Sabina’s question:
“Hi Darnyelle. This question may seem off the cuff, but if you had to give a speech today to a room of entrepreneurs at the collegiate level who are already building their first entrepreneurial venture, called the 7 Characteristics of a Profitable Business Owner, what would you say?”
Check out my response to her question here:
What I don’t share in the episode is that I have given this exact talk to a room of entrepreneurs before. And it was both a worthwhile and exhilarating experience. I can totally understand the challenge of knowing what a profitable business owner looks like because so many people preach “get a client, get a client”, but they don’t share how to price and ensure that you made profit on that transaction in serving the client.
In my opinion, a profitable business owner is distinguished by the following seven characteristics:
1. They are visionaries. Profitable business owners think ahead and they think big. They are very clear about the vision they have for themselves and more importantly for their legacies. They are always focused on the vision and aligning themselves with those who can turn the vision into a reality.
2. They build teams. While they have big visions, they are not set on them being the only one to bring the vision to fruition. They aren’t trying to do it all, they build teams – employees, strategic partners, collaborators and contractors. For profitable business owners, it’s about having talented people who fill the gaps they have and solidify the plans necessary to achieve the goal.
3. They focus on scaling their business. Profitable business owners are not the bottleneck in their businesses. And they get the guidance they need to learn the correct model to scale their business. They work with coaches, consultants and other advisors to ensure that they are thinking correctly and are considering everything necessary to continue to scale their business. They know that the greater the scale, the greater the profit.
4. They know their numbers. You’d never catch a profitable business owner without their KPIs – Key Performance Indicators. They know what each number means and how to leverage them to move the needle in their business. They use the numbers to make decisions about what is necessary to keep growing their businesses.
5. They take fiscal responsibility. Profitable business owners have a responsibility to themselves, their families, their business and their community to operate as a business owner. And they remember that at all times. They make decisions based on the value it adds to the company and themselves.
6. They charge more than it costs. The way they became a profitable business owner is by making sure that each and every transaction gives them more than it costs to perform the service. You see, they are clear that if you just break even, you won’t be profitable. They are clear about the value of their time and clear about what it takes for them to bring in team members to perform the work in excellence so that they get more clients and referrals.
7. They keep fear at bay. When you run a profitable business, you are often taking risks. Profitable business owners feel the fear (it’s natural) but they keep pressing anyway. They know that fear is not real and it’s in the past or the future and as long as they are clear about their present, they will be good to go.
Now I want to hear from you, what’s your two cents?: What characteristics would you add about profitable business owners? I can’t wait to hear what you have to add to this question Sabina asked!
©2015 by Darnyelle A. Jervey. All Rights Reserved. Darnyelle A. Jervey, MBA, The Incredible Factor Business Optimization Coach and Mentor, is the founder of Incredible One Enterprises®, Incredible Factor University® and the Leverage Your Incredible Factor System®, a proven step-by-step program so you experience financial and spiritual abundance in your life because of your business. For more information and a FREE audio CD “7 Critical Mistakes Even Smart Entrepreneurs Must Avoid for Clients, Connection and Cash Flow!” just fill out the form below.