7 Monthly Habits You Need To Maximize Your Business Profits
One of the most common questions every entrepreneur asks is, “What is the most practicable way to increase the profitability of my business?”
Implementing simple strategies will maximize their profits while minimizing their costs to increase their profit margin. On this front, Tyler McBroom shares the seven habitual traits that each needs to adopt to drive their business to profitability.
Tyler insists on the understanding that every habit is alienated more towards creating a psychological pattern called a “habit loop.” Using his company Measured Results, CPAs, Tyler elaborates further that a habit emanates from the initial trigger that sends one’s behavior into an automatic response. That is something happening in your environment that tells your brain that it is time to perform the habit.
In most instances, most profitable businesses set goals before implementing the habitual trends to drive in profit. The idea is that if you clearly define the plan and have some emotions attached to it, then creating habits to match the need to attain the goals becomes automatic.
But first thing first, What habitual traits do you need to look out for?
- Practice the 90/10 Rule
The rule entails the following; You can operate on 90 % of your monthly business income. The remaining 10% should be set aside as a contingency fund to cater for any unexpected emergencies (such as your business getting forced to close for months on end due to a pandemic). You can achieve the above by sitting down with your CFO and create a plan on the effective use the 90% will be spent on. Once you have everything in place, create a habitual trend to focus your mind on operating your business going forth on 90% of its income.
- Time Management
Time can be one of your greatest enemies when not adequately managed. Most effective business people have a precise method of allocating their time effectively. One of the most effective ways of time management is having plans well in advance by using the bucket system. A bucket system is a methodological approach to focusing your time and energy around your biggest to-do list.
Getting into the habit of sitting down and mapping out your week, reviewing your list, meetings, travels, and other prior commitments will enable you to be glued towards your calendar and, in the long run creating a habit around the management skills.
- Have the Numbers At Your Fingertips
If you are not keeping track of your income, expenses, and profit, then you are not qualified to be called a business owner. Tyler McBroom explains the need to have the numbers inside out, which requires careful and regular check-ins.
He advises on creating a habitual trend of devoting at least an hour each week to review your profit and loss accounts and cash flows. The habit will trigger you to be all alert and quickly position yourself in your profitability ladder and match the targets you have set for the business
- Follow Up
With many distractions happening in the business world, it may not cross your mind to check your pipeline and follow-up on the potential leads frequently. Instead of assuming that once you have established your business, the rest will fall in place. Instead, take action, make those cold calls, send follow-up emails and reminders, and follow-up until you get that definite No answer.
Following up on clients means that you have to create a habit of being persistent. You can easily leverage using technology to reach a larger mass.
- Focus And Always Look Forward
It is vital to keep pushing yourself to close the next deal and bring in new clients into the sales pipeline. High-performing businesses have a characteristic of generating new leads, therefore keeping you on your feet to focusing on the future while working with the current clients.
Have a habit of setting a specific goal each day and work towards accomplishing it fully. During some days, it may seem that everything is far from reality; if you strive to become consistent, you will eventually make some real deals.
- Learn to Say No
Sometimes, situations may require you to say no to shield your business and avoid time mismanagement. For example, a deal may be too good to be true in some instances; take time to review each specific contract before fully diving full board.
Tyler advises on the importance of having a solid stance regarding decision-making as the habit may drive you to avoid future regrets.
- Build a Strong Team
Tyler emphasizes the need to ensure that your team composition functions in all areas. It is essential to adapt more towards creating a habitual leadership trend rather than a managerial approach. The chances are that not everyone is happy to be micromanaged. Sometimes, it may lead to a negative attitude towards the business and eventually lead the business to the drain. But hiring and training up top performers is critical to a business’s long-term success.