Every business has a unique profit story, which defines how you generate revenue and profit in your business. This story is more than just numbers on a balance sheet; it’s about how you feel about money and if you feel worthy enough to make money in your business.
You need to have a positive money mindset in business, or you will be held back from making money in your business. In fact, you could work against yourself and sabotage your business with a negative mindset.
Knowing your profit story can be the difference between success and failure in today’s competitive business environment. Money is an emotional subject for many business owners, as it can create feelings of success and failure. When our businesses do well financially, we feel successful and confident in our abilities. When our businesses don’t do well, it can have the opposite effect and make us question ourselves and our decisions.
To stay on top of your business numbers, it’s important to take a step back from the emotion of money and look at the facts objectively so that you can make smart decisions for the future of your business. With a clear understanding of your financials, you can determine where to improve to reach your goals and grow profitably.
Let’s explore why your profit story matters and how to ensure you get it right.
What is your profit story?
Your profit story is an ever-evolving narrative of how you earn money and turn a profit. It includes everything from understanding customer needs to pricing strategies to analyzing market trends, all to make a sale that generates revenue. Your story includes understanding your costs, such as overhead expenses, advertising, employee wages, etc. But your profit story also includes how you feel about money.
By understanding all these pieces of the puzzle, you can create a plan for success that will help keep your business profitable for years to come.
How do you find your profit story?
Exploring your money mindset can help you understand your attitudes and feelings about making money in your business. It’s important to assess your current relationship with money and know what you think when you hear the word ‘money’? Are there any underlying fears or anxieties that you hold associated with financial matters?
Take some time to dig deep and explore what’s under the surface and consider how your childhood upbringing might have impacted your views around money. Were finances talked about freely and openly, or was it taboo in your home growing up? Once armed with increased insight into your own attitude towards money, you’ll better understand how to reframe any negative feelings and craft an outlook that reflects financial abundance.
What are the benefits of creating a profitable business?
Building a profitable business can have many benefits for entrepreneurs as it can offer the owner financial security and stability in the future. A thriving business can also have intrinsic advantages, empowering the entrepreneur to be their own boss and make meaningful and impactful decisions.
The bottom line is that it can take courage to look at your business numbers, but assessing the financial state of your business is essential. Whether you’re just starting out or are well established in your business, understanding your current financial health enables you to make better decisions for the future. With the right money mindset, you can dive into the numbers and feel empowered, knowing you have greater insight into your financial situation.