The Purpose of Owning A Business

The fastest way to burn out with your business is to stop focusing and striving for this one thing, that I will get to in minute.

What is the purpose of owning and growing a business?

For most people, we start a business because we want to make money, make an impact and have freedom. Right? At least that’s why I have started each business I have owned.

For most people I think the biggest reason start a business though is freedom. Freedom to make as much or as little as you want to make. Freedom to work when you want to work, how you want to work and where you want to work.

Freedom to think, freedom to choose and freedom to decide.

But most entrepreneurs find themselves in a seemingly constant cycle of panic, abbreviated by sweet moments of success. The stats back it up 51% of small business owners have gone no less than 6 months without a paycheck at some point in their business, and almost 60% of small business owners make $50,000 or less per year.

So sure we get into business for money, impact and freedom but many only cage themselves into a prison they can never get out of.

I see a lot on social media, influencers, coaches and gurus who talk about how much they made in their last launch or last year, but you never hear about what their actual profits were. I don’t care if you did $1 Million dollars in sales last year if you had $800k in expenses.

A business is considered profitable when it makes money, after you the owner is paid, and all the bills are covered. If you have a team of people whom you support with a salary, but aren’t bringing home a salary yourself, you are doing something wrong. Plain and simple.

The purpose of a business for the business owner, is and always will be to make you money. PROFIT.

This means that if you can’t afford to hire someone without cutting your own salary, don’t hire that person, go it alone just a little while longer until you hit a number where you can afford to hire someone.

We must be diligent with managing our expenses in business, just because you think you can afford something, doesn’t mean you can. Just because you tell yourself your expenses are just you reinvesting in the business- doesn’t mean you actually are.

If your business is not profitable- do not spend any more and savagely cut expenses until you are profitable again.

Depending on the size of your organization truly dictates what your expenses should be, but cut cut cut, until you are paying yourself.

If you don’t take of yourself first you can’t take care of anyone else.

If the business can’t take care of you first, it can’t take care of anyone else.

A great resource for managing your expenses and finding more profit in your business is “Profit First” By Mike Michaelwicz. I wish I would have read it sooner, and you will wish you had too.

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