{"id":14002,"date":"2017-03-01T10:00:38","date_gmt":"2017-03-01T10:00:38","guid":{"rendered":"https:\/\/smallbiztrends.com\/?p=435445"},"modified":"2017-03-01T10:00:38","modified_gmt":"2017-03-01T10:00:38","slug":"is-there-a-profit-crisis-in-your-small-business-if-so-heres-how-to-face-it","status":"publish","type":"post","link":"https:\/\/businessnewsbox.com\/?p=14002","title":{"rendered":"Is There a Profit Crisis in Your Small Business? If So, Here\u2019s How to Face It"},"content":{"rendered":"

\"Here's<\/p>\n

Think there\u2019s not a profit crisis?\u00a0 The Small Business Administration conducted a recent study and found that of the 28 million small businesses in the US, about 83 percent are not profitable.\u00a0 That\u2019s a shocking statistic.\u00a0 The vast majority of small businesses lose money.\u00a0 That means these small businesses are likely to close, ending job opportunities and reducing incomes for millions of families.<\/p>\n

How do so many small businesses fail to turn a profit?\u00a0 It turns out that it\u2019s because of the way we think about profit — our profit mindset.\u00a0 We talk about \u201cyear-end profit\u201d or \u201cthe bottom line.\u201d\u00a0 We consider profit to be whatever is left over after we pay all our bills.<\/p>\n

The problem?\u00a0 Too often, there\u2019s nothing left over.<\/p>\n

We think of profit as an event — something we will eventually, at long last achieve.\u00a0 It\u2019s just over the next hurdle, just around the bend.<\/p>\n

The trouble?\u00a0 Profit isn\u2019t waiting for us to arrive.<\/p>\n

How to Make a Profit<\/h2>\n

What we need in order to solve the profit crisis is a new perspective — a completely new way of thinking about and achieving profitability for our companies.\u00a0 And here it is:\u00a0 You take your profit first<\/a>.<\/p>\n

Every single bit of revenue that comes into your company becomes a step toward profitability.\u00a0 When you get a check, you deposit a predetermined percentage into a separate account that\u2019s designated as your profit account.\u00a0 You open this account at a new bank, and you don\u2019t link it to a debit card.\u00a0 You don\u2019t pull funds from it to pay bills.\u00a0 This is your profit account, and you fund it first, every single time money comes in.<\/p>\n

Now you may be just barely getting by right now, and you may worry that you won\u2019t be able to pay your bills if you start setting aside profit first.\u00a0 But here\u2019s the secret … you\u2019ll find a way.\u00a0 You\u2019ll become more frugal.\u00a0 You\u2019ll drum up more business.\u00a0 You\u2019ll learn to do more with less.\u00a0 Think about it — if you lose a client (and future revenue) you don\u2019t just close up shop, right?\u00a0 You find a way to make it work.<\/p>\n

Now I know that putting profit first works.\u00a0 I\u2019ve seen hundreds of companies all over the world transform themselves into lean, specialized, profitable businesses.\u00a0 But for people who are apprehensive, I suggest starting small.\u00a0 Try taking 1% of your revenue as it comes in and starting that profit account.\u00a0 1 percent?\u00a0 You\u2019ll never miss it!\u00a0 But as you watch it accumulate, as you realize that you can still pay your bills and sign your staff paychecks, you\u2019ll begin to understand how it works.<\/p>\n

We must learn to prioritize profit if we are to succeed as entrepreneurs.\u00a0 And to be clear, I\u2019m not saying that money is everything in life.\u00a0 But if you want your business to thrive \u2026 if you want to be able to provide for your family, you owe it to yourself, your employees, and your community to run your business profitably.<\/p>\n

The solution to the profit crisis is to shake off the old mentality — that profit is what\u2019s left over — and to adopt a new mindset — profit comes first.<\/p>\n

Republished by permission. Original here<\/a>.<\/small><\/p>\n

Profit<\/a> Photo via Shutterstock<\/em>
\n<\/small><\/p>\n

This article, “Is There a Profit Crisis in Your Small Business? If So, Here’s How to Face It<\/a>” was first published on Small Business Trends<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

\"\"\/<\/p>\n","protected":false},"excerpt":{"rendered":"

In order to solve the profit crisis, we need a new perspective – a completely new way of thinking about how to make a profit with your small business.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,73,27],"tags":[],"class_list":["post-14002","post","type-post","status-publish","format-standard","hentry","category-management","category-nextiva","category-publisher-channel-content"],"_links":{"self":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/posts\/14002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14002"}],"version-history":[{"count":0,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/posts\/14002\/revisions"}],"wp:attachment":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}