Bigger isn’t always better. Repeat after me, Bigger isn’t always better. You talk to most entrepreneur’s they always want to grow. Bigger revenue. Bigger company. More stuff. As an entrepreneur you want to have the fewest things producing the maximum possible in profit.
So Don’t be fooled by these people talking about how they’re doing 2 million or 3 million or even 20 million. It doesn’t mean anything. It does not impress me. How much cash are you putting in your pocket based on how much assets you have! That’s what impresses me.
Sustainable Success – Balanced Approach
The goal is not to get big the goal is to create sustainable success. It’s to ride the economy whether it goes up or down and your ok. Your business can sustain itself. The only way your business is going to be ok during bad times is because you have cash. You didn’t spend all your money trying to get big all the time buying more stuff.
What levers are you going to pull within your business to maximize your profit not always your revenue. In the beginning you’re going to spend the majority of your time and money marketing to get more clients and more sales. As you mature you need to take a more balanced approach. You need to look at your expenses and ask yourself what’s going on here.
You have to make sure your being as effective and efficient as possible. I noticed as most entrepreneur’s grow it’s pretty easy to get customers but not always easy to keep them. Ask yourself this. How much richer would you be if you still had every customer you ever sold a product or service to?
When asked these questions does it make you focus and think a little differently? I would rather have a 2 million business making 15% rather than a 5 million business making 5%. Remember, the goal is not to get big the goal is to create sustainable success.
Look at most of the Inc 5 companies or the profit 500. In order to enter those contests they look at your revenue for the last 5 years. It’s going up ever year. What you don’t know is that a lot of them are growing growing growing for a few years and in year 5 they are gone. There bankrupt. Out of business.
There only focused on the revenue they don’t have a balanced approach. Revenue for show profits for dough. Repeat after me. Revenues for show profits for dough.
You want to be Bruce Lee in business. Lean and mean and fast and flexible. You don’t want to be bulky and slow and you can’t move. You want to be Bruce Lee. Lean and mean! Sustainable success.