Today is Tax Day. I hope you’re feeling good because you submitted your returns weeks ago and had a profitable 2022.
But what if you’re stressed because your company had a rough year financially?
Inflation certainly added extra challenges. If you recently launched your business, getting the word out to attract customers takes time and focused energy. Or you could be shortchanging yourself by charging less than you should.
Don’t beat yourself up. It takes most small business owners a year or two to become financially stable.
And none of us can control the economic climate. Realistically, these are the things we can control:
- How we treat our customers and clients
- Our prices
- Most of our business expenses
- Where (and how) we market our awesome products or services
- Our attitudes and mindset
Things get easier when we have systems for long-term financial stability (and a solid marketing plan).
I highly recommend reading Profit First, a book by Mike Michalowicz. Traditional accounting uses the equation Sales – Expenses = Profit. It’s how I ran my first two businesses. I’d wait until the end of each month to pay myself whatever was leftover and kept profits in savings when I could.
But Mike suggests flipping the equation to Sales – Profit = Expenses. Now, I pay myself (and my taxes) before committing to other business expenses or investments. You’d never expect employees to work for free or delayed compensation, right? Well, it shouldn’t be any different for you as an owner once you’re past the start-up phase.
This simple accounting (and mindset) switch kept me from draining my savings during Joyful Rising Writing & Marketing’s first year in business. I bet it could help boost your profit margins, too. And of course, we do our best work for the people we serve when we’re relaxed instead of worrying about our next paycheck.
So, give Profit First a read and then email me at firstname.lastname@example.org to share your thoughts. I’d love to chat about it with you!
Sending gratitude and love your way,
PS – Want to develop a strategic marketing plan so you can grow your business, impact more people, and feel calm on Tax Day? I offer consulting sessions where we streamline big business goals into bite-sized action steps. Simply reply to this email or complete this short form to request your complimentary, no-strings-attached Discovery Call.