4 Brutally Honest Facts About Why Your Business Is Losing Money
Jul 12, 2024In the latest episode of "Keep What You Earn," host Shannon dives deep into four brutally honest facts about why your business might be losing money. Let’s expand on these topics and explore how to apply these insights for better financial health and long-term growth.
First, Shannon emphasizes that your business is not meant to entertain you. While it’s great if your business aligns with your passions, its primary purpose is to generate revenue. Shannon shares a personal story about her childhood dream of becoming an artist and how her father advised her to focus on a more lucrative career path first. If you turn down potential revenue streams because they don't seem "fun," it might be time to reassess your goals. Remember, boredom in business can be a good sign that you're focusing on building a cash-flowing asset that can eventually free up time for your passions.
Second, Shannon underscores that you can't save your way to scaling. It's essential to focus on growing your sales and marketing efforts rather than getting bogged down in minor cost-saving measures like tax strategies. While saving on taxes is beneficial, it should not overshadow the goal of increasing revenue. Invest your time in high-impact activities like lead generation, networking, and content creation. Your time is finite; use it to build, grow, and scale your business.
Third, Shannon advises against overspending on unnecessary high-end solutions when starting out. Many new entrepreneurs debate investing in expensive software or platforms before making their first sale. Instead, use free or low-cost alternatives to test your business ideas. Shannon herself launched a successful online course using simple tools like Dropbox, Zoom, and Google Docs. Prove the value of your offering before upgrading to more sophisticated tools.
Lastly, Shannon emphasizes that simply thinking about work isn't the same as working. Inspired by lessons from Alex and Leila Hormozi, she underscores that acquiring knowledge is only beneficial if it leads to actionable steps and behavior changes. Consuming books, podcasts, and courses may feel productive, but without implementation, these activities are as unproductive as watching Netflix. Reflect on the content you consume and ask yourself, "How can I apply this in my business right now?" If it doesn't lead to actionable steps, refocus on activities that yield tangible results.
These four brutally honest facts are wake-up calls for any entrepreneur striving for success. Your business's primary role is to make money, not just to entertain you. Shift your focus from merely saving money to scaling your revenue. Avoid over-investing in high-end solutions before proving your business model, and most importantly, turn your learning into actionable steps. By internalizing these lessons and applying them, you can steer your business towards a more profitable and sustainable future. Now, take these insights, implement them, and watch your business transform. Happy earning!
What you'll hear in this episode:
05:13 Boring businesses equal big money opportunities.
08:43 Use time to make more money, grow.
10:18 Scaling business is about revenue growth.
13:31 Value over appearance, start small, prove worth.
17:29 Evaluate content value, limit unproductive consumption, prioritize productive work.
If you like this episode, check out:
What Should You Know About Tax Estimates?
How Do You Build a Business with an Exit Strategy in Mind?
Not Having This Can Ruin the Sale of Your Business
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
