Many years ago, one of my sons asked me, “What do you get paid, Mum?”
I said, “I own the business. I get what’s left over.”
“Well,” said my son, “how do you make sure there’s enough left over for you to get paid?”
I replied, “That’s my job as the business owner, to make sure the business earns enough to pay the staff, pay all the bills AND then has some left to pay me.”
As the saying goes: ‘Out of the mouths of babes.’
We see many people owning businesses, and they may even employ many people, but they don’t make enough to pay themselves a reasonable market wage; let alone when you consider the number of hours they work, to pay them a reasonable hourly rate. How disheartening for them.
Sometimes it’s just timing. You’re in start-up mode and know that you will be taking a reduced income to get things going. Sometimes it’s a lifestyle choice; you’re in wind down stage and are comfortable with that.
But if you’ve ever realised that you’re paying your staff more than you earn yourself, you’re working hard for long hours, or are just earning below what you could if you just “got a job” and not have all the responsibilities that come with being self-employed, then it’s time you got real and realised that your business is just not viable as it is.
To earn more money you have to either increase income or decrease expenses. It’s that simple. And that hard!
There’s only a few ways to grow your sales:
- Get more customers
- Sell more to current customers
- Put your prices up.
The same with expenses:
- Buy less
- Negotiate better prices
- Organise financial efficiencies within your business; delegate; make sure what each person is doing is what’s most cost efficient for the business. Are you spending time doing things that don’t earn income, when it could be delegated freeing you up to spend time on income generation?
If you feel you’re just not earning what you should be from your business, give one of our Directors a call. We can help you work out what you should be earning from your business. And then work with you on each of those areas, helping identify where you can either grow your sales, reduce your expenses of become more financially efficient.