Everyone wants money. Everyone needs money. Why did you start your business?
Some replies – Out of necessity, I saw a gap in the market, I wanted to make a difference, I knew I could do it better, I knew I could do it more efficiently, I wanted my own business, I wanted to be my own boss, I wanted to build a legacy, I wanted to own my time, I wanted more time with my family, I did it for a specific cause.
Whatever your reason, here you are, and now you need money. Yes, need to because you have expenses, personal and business. And every year your expenses increase. Not so for your revenue.
Whether you’re an NPO or a for-profit business, you need money. It’s only how we spend the revenues and surpluses/profits that differ. No NPO will survive if their revenue is less than their expenses.
A mistake that businesses often make when revenues stagnate or even decline, is to diversify, and they do so before they’ve even turned a profit. Is the focus here on profit or revenue? Because those are two very different things.
In a for-profit business making a profit is everything. In an NPO making sure your revenues at least match your expenses is everything. This might sound obvious to you, but why then do so many businesses struggle to make a profit?
Could it be that they don’t conduct planning? Own a salary and not a business? Don’t have a budget?
If your business is not making a profit, there is a reason for it that you are likely not seeing or ignoring.
Let us help you.