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Chasing revenue is a good sport for business owners.
It gives a sense of achievement that the business is generating so-and-so revenue every month.
It becomes a good topic to speak about when you meet your business friends.
Or when someone asks you how your business is doing.
But as soon as you tell your revenue numbers and feel good about yourself, a thought creeps up from a dim corner of the mind, saying,
"The revenue is good, but how much are you taking home as your income?".
If the taking-home amount is not what you had dreamt you'd make when you started your business, this thought can ruin your motivation to keep running your business.
Taking Home amount = Revenue - Operating Costs.
i.e., Your Net profit.
Your peace of mind will be determined by your net profit and not by the revenue generated.
Because chasing revenue feeds your ego.
And chasing net profits feeds you and your family. It gives you the freedom to provide the lifestyle you want them to experience.
The latter is more satisfying and grounding than the former.
Because NO human has ever attained peace by feeding the ego.
What can you do?
1. Calculate and become aware of your net profit.
2. Find out leaks in your cashflow system and fix them.
3. Focus your energy on selling high-margin products.
Most importantly, think about efforts vs net profit.
High effort, low profit:
Will drain you mentally and physically.
Low effort, High Profit:
Will boost you to keep going.
It's your choice!
Consider a point in time,
You and your friend make 10lakhs/month in revenue from each of your businesses.
You take home 50k/month from your business.
Your friend takes home 25k/month from his business.
A third friend walks in and says, "I work in a bank and take home 1 lakh a month."
What's your thought gonna be?
Want to know where you are the bottleneck in your business? Take the free Business Dependency Test!
