Strategically Choosing to Build a Business with Less Profits in Pursuit of Financial Freedom
Episode 604: Show Notes
Let’s start by saying it’s okay to be wherever you find yourself in your financial journey! This one is for those of us who are working our faces off on the back end, and not seeing this translate to profits. Maybe you’ve already identified your first baby step to start working towards your goal. Today’s episode is about identifying your goals and putting them into action. We’re here to equip you with the tools you need to put those steps into action with a long-term goal in mind, from identifying what you want out of it, to learning what you need to learn to grow a healthy business.
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The Difference Between a Lifestyle Business Model and Growth Business Model
There’s a common misconception that offering premium, exclusive, and excellent customer experience has to be high dollar. That’s simply not true! The margins available to service-based businesses are simply so much higher than they are to a product-based business or even a one-to-many model because of the simple costs involved with running a day-to-day business. It’s so important to ask yourself what you want out of your business. Are you running a business to fund the lifestyle that you want? Or are you mission-focused for long-term growth and sustainability? Both are totally okay! But each one requires different things to survive and thrive.
The Life Lessons we had to Learn First in Order to Grow a Healthy Business
How amazing is this? You get to decide exactly what to do with your business based on what your needs are right now, and those needs change because you’re human and you’re evolving and you’re growing. For the first two years of running our business, we focused on lifestyle needs, and then we moved on to growth, which looked really different in year one and year two. Giving yourself the opportunity for exposure will give you the courage you need to do new and different things. You can make your own choice according to which direction you want to go in.
The Biggest Result of Deliberately Choosing Less Profit
Profit is not a bad thing! Money is not a bad thing. It all depends on how you use it. So if we’re looking at running a for-profit business, on purpose, then we need to be planning for profit. When we consider profit, that needs to be informed by need. Working with clients again and really being in the weeds with their pricing and profits has really shown us that we are barely pricing to break even! We’re picking prices out of thin air and finding ourselves constantly stressed out because we’re not adding the margin we need. What we need to be considering is profit margin and revenue. Everything else can change. You get to decide!
Quote This
You just get to decide based on what your needs are right now and those needs change because you’re human and you’re evolving and you’re growing.
Highlights
The Difference Between a Lifestyle Business Model and Growth Business Model [0:04:05]
[0:10:24]
Why You Get to Decide on Your Business Goals According to What You Need [0:19:33]
The Biggest Result of Deliberately Choosing Less Profit [0:04:22]
ON TODAY’S SHOW
Abagail & Emylee
The Strategy Hour Podcast
We help overwhelmed and creative entrepreneurs break down their Oprah-sized dreams to create a functioning command center to tame the chaos of their business. Basically, we think you’re totally bomb diggity, we’re about to uplevel the shiz out of your business.
KEY TOPICS
Building a Business, Profit, Financial Planning, Margins, Service-Based Business, Product-Based Business
