Is Your Business A Hobby, Job or Profitable Enterprise?

Is your business a hobby?  Is it a job?  Or is it truly a profitable business?  What are you doing to guarantee its success? 

In order for a business to be successful, you must first be profitable!  You can not stay in business for a long time, unless you are making a profit!  Most business owners will try to expand at the wrong time. Sometimes, they do not create a niche and try to serve everybody!  At times, they may fail to define their uniqueness.  Often, most business owners never develop a system or a competent independent team that will support them or the company!  The company is doomed for failure unless, they first complete the basic steps outlined above.

Where do you stand in these critical areas?

Successful entrepreneurs must create value by being profitable, creating a niche, and communicating how their business is unique and different from its competitors!  Additionally, they must create a comprehensive system and develop a team!  Lastly, successful entrepreneurs should expand the business at the right time!  Some business owners want to open a second office across the city or state.  Others, want to spend more money, buy more equipment, add new business services and hire more people before the sales materialized.  Be careful and not grow too fast! 

Does this sound like you? 

Consequently, entrepreneurs never can sell their business because they have not created any value!  They are the business!  When they leave, the business will not sustain itself.  It will die!

Surprisingly, some people do not concentrate on their business numbers and key performance indicators!

How many leads do you have?  What is your conversion rate?  What is your average sale?  How many sales have you made this year?  What is your profit margin?

Just because you open your doors for business, does not guarantee that people will do business with you!

Many business owners begin with big dreams but, do not build the necessary foundation to succeed!  New and experienced owners get too immersed in the day-to-day activities.  Often, they are too close to the business and can not see the things that are needed to improve the company.

Sometimes, they concentrate on the wrong activities!   First, some entrepreneurs spend too much time on "busy work" and not enough time invested on profit-making and sales generating activities.  Second, they spend too much time networking with little return-on-investment.  Instead, they should work on activities that will directly increase sales!  Third, they spend too much money on advertising and not enough money on their people!  Last, they spend a lot of time on lead generation activities with prospects when, they should focus more time with their clients!  Entrepreneurs must learn more about their client's  industry, needs, challenges and their competition! 

How can you can become a greater resource and an asset for your clients?

As business people spend time running the business, it is as important to dedicate time to review their results, assess the critical areas of their business and make corrections to improve it!  Make an effort to spend at least an hour every week to monitor your current results and plan for the future!  Successful entrepreneurs must learn to “step back" and look at the "big picture"  This will help you become more proactive instead of reactive! 

If you can not answer the above questions openly and honestly, you might have more work to do!  Perhaps, you do have a hobby and not a profitable enterprise!

Check out this clip from popular comedy, "The Office"

Does Michael remind you of anybody that you know? (smile)

Enjoy!!