The original meaning of the word "coach" was as a description of transportation; a means of getting from Point A to Point B.
The same applies to a coach as we usually hear it today. A football coach, a basketball coach, a business coach. They all are trying to get their players/clients from Point A to Point B; from a good player to a great player, from flawed mechanics to good mechanics, or from one level of success to another.
My role as a Profit First coach is no different. It's to get your business to next level.
The truth is most of us didn't get into business to crunch numbers all day, and struggle to answer financial business questions like;
How much should I be making as the owner?
How do I know if I have a healthy profit margin?
Am I going to have enough for taxes this year?
Can I afford to hire some more people?
When is it the right time to scale?
Will I be able to sell my business and retire?
Not knowing that stuff kinds sucks, and usually leads to a lot of second guessing.
So I help solve that problem by coaching you through a system so you can easily manage your cash and give a purpose to every dollar you make.
The biggest benefit? The two "C's" - Clarity, and Confidence.
Clarity around your finances; we take the complicated right out of the equation. That clarity in turn creates the Confidence you need to hit your goals, grow your business, and keep more of your money.
Get from Point A to Point B. Faster and more easily.
If that sounds good to you, let's talk. Just click the button below.
One of the first business books I ever read was "The E-Myth" by Michael Gerber. And while this book certainly was foundational in the way I thought about business I also believe it is one of the most misunderstood business books out there.
As a brief overview, the concept of the E-myth revolves around the fact that many businesses are started by people who are really good at what they do - the "Technician" - not being able to make the leap to true "Entrepreneur", thereby never allowing the business to reach it's full potential. For instance a genius computer coder who loves programming so much he never develops the skills needed to run a viable business, so his amazing work never achieves any significant market penetration.
The fact is that it's not always the best products and services that win. It's the company that best communicates what they have to offer, and then delivers that offering efficiently (has good systems - another Emyth core concept) that usually wins.
That's why the book tells us we as Entrepreneurs need to work "on" the business, not "in" the business. The role of the Entrepreneur is to develop systems and processes that answer the question "How will this business work best?" And while this is true, this is also where I see a lot of business owners really screw up.
You see working "on" vs. "in" is not an "either/or" proposition. It's "both/and".
In other words it's very unlikely you as the owner can be doing nearly all the "technician" work one day, and then the next day handing it all off to someone else so you can go "create systems".
I see a lot of businesses get in financial trouble trying to pull this off. They hire too many people too soon, which almost always results in the owner earning less than they should from the business. The justification is that they need people to grow the business, so they'll take less until sales increase to where they need to. And 5 years down the road they are still stuck.
And selling the business? No buyer is going to touch a business where they can't step in and earn a return on their investment, the baseline of which is what they will make as the owner.
It's better to think of "on" vs "in" as a continuum. You gradually hire and offload technical tasks as sales increase, not hire and hope. You forecast how the additional payroll will affect your profit margin and labor rate, and you leave owner's pay out of the equation. When our clients are ready to add employees, we set up a "new hire" account and allocate into it for 2-3 months before the actual hire is made, which allows us to evaluate how cash flow is affected before a new employee is on-boarded and then "whoops, what happened to all our cash?" That can get really awkward, really fast.
Work on your business, yes. Just keep in mind that it is usually years before a business is mature and financially stable enough to support the owner doing none of the technical work. Do the work necessary to understand what size team your business is able to support and where you currently are on the "on" vs "in" continuum. Then create a plan to get you from where you are to where you want to go, without unnecessary financial risk or stress.
I am here to help.
One of the things Alwyn Cosgrove taught me is that you need to be constantly tracking progress to goal. Every year he sent out a post at the beginning of July which reminds you that it's halfway through the year, so you should be 50% to your (insert weight loss or fitness performance goal here).
The same thing is true of your business.
By now you should have your Q2 numbers in hand and be evaluating your company's performance over the first half of the year.
Now is the time to compare your actual Year-To-Date progress with the goals you set for your company at the end of 2018 (You did set goals, right?)
At the least you will want to see how your sales are tracking compared to Q1 2019 and also compare to Q2 2018. You can pull a Profit & Loss and Cash Balance report from your accounting software and run those comparisons. You will also want to compare your total expenses for the same periods and evaluate the ratio of expenses to sales. Evaluating expenses on a quarterly basis, and working to increase revenue at a greater rate than expenses, is one of our primary focuses with my FFP clients, as this is how greater profits are created.
One of the other things I do with my clients is make their financial lives easier. The less time it takes to get information that matters (eg. helps make better decisions) the more time you have to focus on other areas of your business.
For my clients using the Fit For Profit Dashboard, there is no extra work involved to comparing their quarterly financial performance at a glance. Every time they calculate and record an allocation, the dashboard automatically tracks performance on a monthly, quarterly and yearly basis, and shows progress to goal.
Here's a (not so) top secret video walkthrough of "Tab 6.0 - PF Allocations", a Fit For Profit exclusive available only to FFP clients.
Please expand the video to full screen for best viewing.
The fact is that if it's not easy to do your financial comparisons, you are probably not going to do it. As a small business owner you are pulled in a hundred different directions, I get it. My mission is to simplify your life and make your cash work for you. This is one more way to make that happen.
Q3 will be over before you know it. Schedule your Profit Maximizer Call today and let's talk about how to make managing your cash easier.