The Key To Having More Money Isn’t Always About Generating More Sales.

When profitability is valued as much as sales, business owners can achieve financial freedom.

"The key to having more money isn't always about generating more sales."

I am really excited about this episode of the Lady Without Limits podcast. My co-host, Amy, is going to talk about something we all love and hate to think about: money. She's going to discuss the push and pull between making more money and profitability in your business, and why you have to have a bird's eye view on both of them. I got an inside scoop of what Amy is going to be talking about, and it sounds like she's going to blow our minds! The key to making more money isn't always about generating more sales. This is something that I need to hear, because I'm always focused on making more sales. 

In this episode, you will learn the following:
1. The importance of profitability not just sales in a business.
2. How to get financial clarity in a business.
3. The importance of efficiency in a business.


Chapter Summaries:
[00:00:00] - Amy is going to talk about the push and pull between making more money and profitability in your business and why you have to have a bird's eye view on both of them. The key to making money isn't always about generating more sales. It's about the right balance.

[00:00:35] - Amy recommends a new product that she finds delicious. She uses it in smoothies on toast and in side bowls and smoothies. Amy loves peanut butter, but she doesn't eat it all that much because of the high amount of calories. Amy is going to try it.

[00:02:20] - Mallory has been a great manager this week. Mallory has never managed a team where she's committed to focusing on their personal and professional development. She feels really good about her managerial skills. She's been a manager before in the sense of managing interns and things like that.

[00:03:06] - Mallory has been working late at night the last couple of days because she has a few exciting things happening. Yesterday, her daughter Annie was clingy, and she needed her attention. Mallory is still an amazing mom. Amy was there to witness Mallory's daughter pooped during a podcast.

[00:04:54] - Mallory is passionate about business. She is doing profit assessments with multiple seven figure businesses every week. She believes that the focus should be on both the sales and the profitability of the business, rather than on the monthly financial situation of the company. She explains how to get financial clarity over your business.

[00:06:28] - In his membership. He has 120 members, and every fortnight he calls them to talk about their cash flow and profitability. One of them, Taylor, had a problem with her business. She was spending too much money on products every month and not enough on profits.

[00:10:43] - Amy advises business owners to focus on the percentage of their operating expenses to their overall revenue, and if they have enough money left over to operate their business efficiently and pay themselves a wage. Taylor's business went from not being able to pay her rent most months on time to paying herself properly and growing her business.

[00:13:25] - Mike Michalowicz tells the story of a rich businessman who created a truck that could deliver tubes and oil. He cut his costs by half, and his business just boomed from there. He advises others to think outside the box and evaluate everything that they're doing in their business.

[00:14:30] - According to him, business owners should aim for between 5% and 10% of profit at all times. Business owners should focus on increasing sales rather than on their biggest month of sales. Businesses that see fluctuation in sales based on time of the year should look at their overall averages. According to the show, you can change your business overnight just by making more efficiencies in the business and cutting unnecessary expenses. The biggest takeaway is that it puts more control in the hands of the business owner. They will be right back after the short ad break.

[00:19:56] - Amy and Mallory are focused on their businesses. This week, Mallory is organising a three-day virtual event for a client. Amy is working on creating a month's worth of content for her business. They will be back with the Lady Without Limits podcast next week.


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