Years ago I believed that profitability was a state of being instead of a state of doing or of mind. Meaning, look at the bottom line on your income statement – are you profitable or not. But as I dug in a little deeper I determined that profitability was more than that. Here are three ways to work towards profitability one step or choice at a time.
1. Make profitability a conscious choice. Every choice and decision we make takes us closer to our goal or further away. If we have made a clear and actionable set of goals, then we need to consider what we do in terms of profitability with every single decision – not just in a year-end evaluation of the income statement. It is really easy to just keep paying bills or doing things the same old way – just because we always have. But is that still working for the company profitability? If not, change it.
2. Make profitability fun. Saving money and making wise choices with our time, money and talents should be fun. If we have a negative connotation around cutting expenses or saving then it is easy to feel like we are being told NO all the time. Turn it around – and look at it as YES to profits and NO to unnecessary expenditures of time and energy. Celebrate the growing profits!
3. Make profitability about more than the numbers. Numbers are just indicators. Indicators of success, wealth, impact, expenses, etc. We need to be profitable with our time and energy and other resources to really see a great increase in overall profitability. If your employees are miserable, then you are not as profitable as you could be. If something takes 5 hours that could be done in 2 if you were not multi-tasking – then you are not as profitable as you could be. Look at every aspect of your business for clues to increasing profitability.
Profitability is what we all hope to achieve. We can do this by having fun and being mindful of how the choices of everyone in the company has an effect on financial profits, efficiency, happiness in the workplace and more. Need help identifying profit leaks in your company? Reach out. We are here to help.