This isn’t a good thing.
In this case, you may be one of the 90% of bizpreneurs who doesn’t make a real profit.
Just makes enough to cover business expenses, and living expenses. With little or nothing left to put away for retirement, or that holiday trip.
Feeling trapped? Wish you could find a way out of this hole?
It sucks, doesn’t it?
That feeling of chasing your tail, juggling so many priorities and never seeming to get anywhere.
You’re not alone. (Not that knowing this help very much…)
Did you know that around 1 in 10 bizpreneurs make enough to build a retirement fund of some sort? So if one of the reasons you became your own boss, ask yourself how profitable you really are.
There are a few threads in the story that I want to tug a little. And to expand in the next few blogs. Here they are:
- Do you know how to measure profitability, and do you have a way of doing that now?
- Do you know how to positively impact your profitability without necessarily getting more client?
- Do you know how to measure your productivity, in a way which shows you how to improve it?
There is a direct ACTION = EFFECT relationship between Productivity and Profit. Anything you do to improve your productivity will impact your profitability.
Productivity isn’t about working longer hours, or working harder. It’s about working smarter. And the keys to better productivity are measurement AND process.
“Yeah, but I’m a graphics designer! What’s that got to do with me?” I can (almost) hear you say.
Well if you’re Alison from Falkirk in Scotland, who IS a graphics designer, it has a lot to do with! Her two small, atomic-powered boys are already full-time job. So being a top-shelf Graphics Designer on top of that requires hard work.
But it also requires smart decisions. So Alison is ruthless about prioritising her work, getting the best possible price for her outputs, sticking to her business plan so she doesn’t go off course, and measuring.
Every week. So that she knows what her PI is.
PI. Productivity Index. Also known as “The Magic Number”.
The best businesses in the world know EXACTLY what their Productivity Index is, in every part of their operations. The impact of every dollar spent on advertising. The overall value created by every hour dedicated to client work.
Imagine if you had a process for working out the best way to spend EVERY working hour as efficiently and profitably as possible.
Would that excite and motivate you?
Would it make a huge difference to your attitude to your business?
Could it be the process that changed your life?
If the answer is YES, then I invite you to download our free Productivity Index. There’s a lot more to this than meets the eyes, but it’s a start.