Pivot Into Profit- Episode 7
Welcome to the final episode of the Pivot Into Profit series! Over the past seven weeks you have been learning from Pivot’s very own CFOs. They hand picked seven concepts they felt would be valuable for entrepreneurs trying to build their business and financials. As a busy business owner, our goal at Pivot was to give you useful information in a quick and easy way.
As always, if you missed an episode, be sure to check them out below!
Target Profits – NOT Revenues
As we wind down the Pivot Into Profit series, it would only be right to dedicate our last post to the importance of targeting profits- not revenues. After all, Pivot Business Group preaches about profit first because we know the power it can have on your and your business.
Make sure you are making money. Some companies use revenue targets as a metric for the success of a business. Heck, you might too! But what are revenues without profits?
Other companies let their competition dictate their prices. If you let the competition set the level of pricing, then the competition will drive you out of business. It's inevitable, you will never keep up and it will run your pockets dry.
When it comes down to it, your pricing can ONLY be structured around your own profit and cash flow goals. Maybe you’ve heard that most small businesses fail within five years? One significant reason this happens is they don’t set their pricing right. These businesses, the ones that fail, don’t take the time to assess the value they are bringing to their clients. When you sell yourself short, or play a cat and mouse game with the competition’s pricing there is only one way your business can go. And it more than likely is NOT up.
Don’t leave the success of your company to chance! Make sure you make the money needed to keep the doors open and more. You’ve got an idea, product, or niche that made you start this business endeavor. Don’t accept mediocrity and plan to barely scrape by.
If you want to beat your competitors, make sure they’re the ones pricing to you!