Today, I want to look at the first of two critical components that can really help you move the needle toward profitability.
Products (The Items or Services You Sell)
People (The Staff You Employ and the Clients You Serve)
Why are we talking about products and services? Because they represent what brings in your top line revenue, and honing your focus on your offering can really make big changes (for the better) with your profits!
One of the first steps in adopting Profit First and creating a profitable business is going through the Profit Assessment. I had the privilege of digging into the assessment of MY business with the author of the book himself, Mike Michalowicz. One of the first things he asked me as we delved into the top-line revenue of my business was, “What is the one area of your business- the product or service you are offering- that you know is not profitable?”
During my Profit Assessment discussion, Mike challenged me to question everything and make no assumptions about our service offerings. I have since realized that just because we have always done things a particular way, we did not have to continue doing them the same way forever.
You’ve probably heard it before – the definition of insanity:
To continue to do the same thing over and over and expect different results.
Mike helped us and many other businesses identify products or services that weren’t profitable. In our case, that meant transitioning a service that wasn’t in our primary focus to an expert company that works well with our team. Making this change has helped us center our entire focus on our passion: helping business owners find the missing profits in their businesses.
So today, I’m asking you, What is the one area of your business- the product or service you are offering- that you know isn’t profitable? Are you holding on to a product or service simply because you’ve always done so, or because you assume it’s a standard in your industry? I challenge you to take a hard look at your top line revenue and what it represents.
I would love to hear from you about a product or service offering in your business that just isn’t profitable and what you plan to do about it!