Sometimes, ego, laziness, and fear will interrupt and skew our reasoning when prioritizing our profits.
The reason we’re in business is to create the maximum amount of after tax profit in the shortest amount of time, with the least cost and risk.
While we all want to do what we enjoy and avoid conflict and work, we can use Joint Ventures, subcontracting, effective delegation, and leverage to create the results we want, if we set things up correctly.
#1 Strategize Objectively
Remaining objective and rational when prioritizing and planning our progress is essential. Clearly defining what will create the greatest return on investment, where the optimal back-end is to be found, and the real marginal net value of a customer or Joint Venture demands careful analysis and communication with your team and mentors. Like a jigsaw puzzle, we want all the pieces to fit seamlessly, so that the flow of business is smooth and natural, not forced and stop-start.
- Diversifying incomes streams and creating additional back ends with long-term potential is the result of Planning, not Panic.
- Compromise and quick fixes will undermine your progress, your reputation, and your balance sheet.
- Remember the 80/20 rules and fearlessly remove the 80% while conscientiously building the 20%. Getting rid of one rat in your organization guarantees that he will takes his rat friends with him.
#2 Reevaluate Regularly
Reevaluate, change your mind, terminate non-productive activities, Joint Ventures, and people, and constantly adjust. You’re in business to make a profit, not to accommodate parasites and create protected employment for losers. Play the “What If?” game, build in Plan B’s, and have contingency plans in place, including Key Man Insurance and alternative suppliers. Things change. See the Big Picture.
#3 Invest in Education
Invest heavily in training and education, but only if you use it. Look for the return on investment. The greatest ROI I ever get is when I invest in training and education, but then I always apply what I learn.
#4 Optimize Your Time
If you only have 24 hours a day, it’s because you’re not leveraged or you’re not delegating. Paying someone $100 to make $1,000 is good business. Don’t do minimum wage tasks and only deal with winners who have a proven track record.
#5 Take an Honest Look
Finally, stand back and take a good, hard look at your business, your time, your profits, and the future of your business. If this was someone else’s business, what advice would you give them?
