Which product or service makes you the most money in your business?

Which product or service makes you the most money in your business? Do you even know this?

If you have lots and lots of products and services in your business, you need to really think about focusing that down, and knowing which ones really make you money. But do you know how much money they each make?

If you offer one to one consultancy, is that actually worth doing? If you do a course, is that worth doing?

I want you to think about how which products and services in your business make the most money. And then you can make some conscious decisions about the best way to manage your business.

Revenue information

Start by looking at the split of your revenue.  Look at your revenue for the last 12 months ideally, but whatever you can pull out.  Look at how much you made from each of your products, how much time they took you take you to deliver each time.

Let's say you have one to one consultancy. Look at how much one to one time you actually spent and how much revenue you...

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How do you measure success in your business?

business money success May 27, 2020
How do you measure success in your business? Is it all about the money, or does something else drive you?
 
For me, I know that I measure success largely by how much money I have in my bank account. I'm a numbers person, and I know this motivates me hugely. However, success to me also means having quite tight boundaries, so I don't work evenings and weekends as much as possible. I have 2 young children and being able to be there for them is really important to me. I want to choose to have school holidays off. In lockdown, these boundaries have become even more important as I love my business and could spend every waking hour on it! However, I need to make sure I have plenty of downtime as well.
 
I also value flexibility in my work, and I don't believe you have to work harder to be able to be successful. I am always looking for ways to make my business more efficient, and outsource things that take me a long time to do. I also try not to trade time for money too much, so...
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Investing in your business

How do you feel when someone says to you that its not that you can’t afford it, that its about whether you believe that they are the right person to take your business forward?  This really annoys me as every business has limits as to what it can afford, so it is always about the money for me.  Maybe I don’t want to get into debt for that £5k course, or maybe that’s not my money priority right now.
 
There is definitely a mindset issue about spending money in your business and this often comes when you think something is too expensive or you shouldn’t spend that.  So, tap into what is the issue really is.  Is it that you don’t have enough money or is it that you are afraid there will not be enough money in three months’ time? If you have a clear plan as to what you were going to do with your money and where the income is going to come from over the next three months you could decide whether to invest.
 
Do you...
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Cash Management

Have you heard the expression “Revenue is vanity, profit is sanity, but cash is king”.
 
It’s a phrase used a lot in the accounting world and one that holds true almost all of the time.  If you don’t manage your cash you will not have a business.  “6 figure” sums are always talking about revenue and are amazing but you have no idea if they have 6 figure costs at all or are turning a profit.  You also have to run the business you have, not the one you want, to ensure your costs don’t run away with you.
 
You must also be careful not to manage just your actual bank balance all of the time, as this includes amounts due for tax, payroll, supplier payments.  It also does not account for invoices that your customers have not paid you for yet.
 
Managing your business on a cash basis for day-to-day practical management of your business numbers is a perfectly good way to do things. However, you must always make...
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