I’m going to share with you how this one simple act changing your focus will change everything in your business.
It’s important as a business owner to change your focus. Every business owner I’ve ever met loves to talk about their sales and sales are important but you cannot sell your way to success. The success comes on your bottom line and we have to really learn to focus on the things that improve our bottom line.
The other change in focus is we need to think about ourselves in two roles not just one. We tend to think of it as my business, right? And it is your business but you really have two roles you have the role as an investor and you have the role as an employee.
I think sometimes we get it all confused and we think about are we making enough money in our business and we’ll think about how much we would make if we work for somebody else but we don’t think about how much money would I be making for the risk that I’m taking in my business. So, I think it’s important for us as business owners to step back and say “Am I being properly compensated for the risk that I take in my business everyday and am I being properly compensated for my role in the business every day?”.
Those are two different things so that’s one focus change think about that both the roles I have in business not just one. And begin to expand your focus past just the top line so if you’re thinking about just sales that’s great and business owners usually are very good sales people and so they love to talk about their sales in their next adventure and their next close but sometimes they’re they’re actually selling things at a loss or they’re selling things below margin and they’re not making anything on the bottom line. So, often they’ll find that they get to the end of the year and there’s not much left and that’s really kind of bad and changeable.
I’d like to see a situation where, yes, we’re focusing on the next sale but we’re also focusing on the margin on those sales and we’re managing our overhead and keeping our overhead cost within line so that we have a robust bottom line. That’s a much better way of in the year, don’t you think?
Change your focus from thinking about I’ve got to meet my business goals and I’ll think about my personal goals later too. I have to meet my business and my personal goals because let’s face it as a business owner you’re not going to meet your personal goals unless the business meets them with you, for you, or allows you to. So we have to think about, yes and, not one or when it comes to our goals our personal goals.
We have to change our focus from thinking about just selling something to getting paid. You know, is this customer that I’m about to take on credit worthy? Are they going to pay me? I was at the end of the day if it doesn’t make it into your cash account it really doesn’t count and you’ve now done a lot of work for nothing. Who wants to do that? Nobody. I don’t nobody wants to do that.
Another way to think about changing your focus is from penny pinching to building wealth. You know, we tend to think that we can make more money if we just manage our expenses and micromanage each one and we certainly do need to control our expenses but the truth is that we can get really caught up in those details as opposed. Opposed to thinking about, “How do I build wealth in my business?”, “How do I make my business as valuable as I can make it?”. It isn’t, you’re not going to do that by managing all your costs. You’re going to do that by building a fantastic strategically positioned business.
How about changing your focus from short-term thinking to long-term thinking? Maybe this year you actually aren’t focused so much on making your bottom line? Maybe this year you’re focused on creating something new that’s going to power your business for the next five or ten years? That’s a choice each year that you can make as a business owner or am I going to focus on this year’s net income or am I going to focus on creating a business that’s more valuable for the future or can I do both at the same time. Sometimes you can and sometimes you have to choose but it’s a choice. That simple act of changing your focus can change everything in your business.