One of the first questions entrepreneurs ask themselves when starting a new business is what the purpose of their new enterprise will be. It makes sense, too - there's no point in investing all that money and effort into something if it's not going to set out to achieve anything!
It's incredibly important to know exactly why you're in small business. There's likely to be a range of answers to this question but at the end of the day, all businesses exist to serve one underlying purpose: to make a profit.
I know it might sound a bit cold, but the truth is that your business simply must be turning a profit to at least survive.
But what's the secret to making a profit, I hear you ask? It's all about genuinely enjoying what you do. Not all business owners love their company, but to be a success, I think it's critical that you like and enjoy your small business.
As part of my job I get to talk to a lot of small business owners all across Australia, and let's just say some of them enjoy running their business more than others. The thing is, it really does show on their profit and loss statements - there is a correlation between how much a business owner loves their job and how much profit they make.
You really can't achieve anything worthwhile in a business without profit. If you're losing money, it's hard to have happy clients and happy staff and believe me; the two go hand in hand.
So go out there every day, work hard and make as much profit as you can. Don't be ashamed, it's not about being greedy or solely focusing on money - your business stands to benefit in so many ways from earning a profit.
And - surprise, surprise - the only companies that can make a profit without having happy clients and staff are banks! I think the best way to round off this week's blog is to finish with my favourite quote, which I think really encapsulates the importance of cash to business: "Revenue is vanity, profit is sanity, cash is reality".
Wishing you all the best for your week in business.
If your business needs any help with working capital management via a business line of credit, debtor financing or equipment financing, contact Earlypay’s helpful team today on 1300 760 205 or visit our sign-up form.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].