Why Selling More Doesn’t Mean Making More

I assume that when you started your business, you wanted to put money in your pocket. Whether your goal for that money is to use it to fully support yourself or your family, or to fund a particular life goal, your business is meant to supply you with money.  As such, making money by selling product is often the business owner’s most common focus. Enter, the hustle timeline.

The Hustle Timeline

When we first start a business we have to get out there and hustle to sell something; to get things moving. Eventually we start rolling. But at some point we want to make more money, and we believe that growing our business is the way to make more profit.

So, we hustle some more. We do more gigs, we move more product, we sign on more clients. There is more money coming in, but there still doesn’t seem to be enough. Then we set our sights on a particular goal, the gig, the number, the client that’s big enough to put us over the edge so we can put more in our pocket. But it never really happens. Here we find ourselves trapped in the timeline; always hustling, and never quite reaching our goals.

The Answer

There are only two ways to put more money in your pocket: increase margins or decrease expenses. If we are using the same labor, materials or processes as we increase sales we are increasing our output, but not gaining anything. Perhaps we may have even added to our spending to buy that new printer or new app to handle the increase in sales volume. If we haven’t examined our spending, we aren’t gaining anything. Taking a good look at our margins and our business expenses is an important step to upping the profits of our business. 

Why Selling More Doesn't Mean Making More: At Peace With Money

To examine your expenses and profit margins, ask yourself these questions. Is your product or service priced appropriately, or are you undervaluing it? Comparing your prices industry standards can help you suss out an answer. So can calculating in materials, labor, and other costs. If you’re unsure how to price your product or service, do some research to get other opinions and methods!

Are you delivering your product or service in an efficient manner, or are there places you could cut time and expenses? Look at your processes, and be discerning. Have you reviewed your business expenses lately to see if it’s really all necessary?

Ask yourself these questions and review the inner workings of your business. This is where your profit is hiding. Let’s get it into your pocket.

Angela

Image Sources:  Roman Kraft ,  Nik MacMillan

Book Review: Steal Like an Artist

Steal Like an Artist Book Review: At Peace With MoneyThere are so many good books out there that could benefit solopreneurs and people looking to educate themselves about personal finance. I’m an avid reader myself, and lately I’ve been devouring books on the subjects of small business, finance, and retirement. I thought it may be useful to you all to hear about my reading discoveries, so I’m sharing a book review of one of my most recent reads, Steal Like an Artist by Austin Kleon. 

The Read

This is an easy read. It gets straight to the point while offering up entertaining anecdotes and doodles. It starts off with the premise that creativity is something everyone has, and that the advice contained in the books can be applied to a number of professions. Personally, I believe this is great reading material for any business owner, not just creative types. After reading, I found myself thinking creatively about my own business. 

Just Start

Kleon’s points are inspiring and motivating. One of my favorites: don’t wait until you know everything, just get started. This advice applies to business so well, and is something I’ve touched on in my writing about starting a business. Feeling the need to have everything planned or figured out can often stop solopreneurs in their tracks. Kleon encourages readers to not let this stop you, and to take up a mindset of learning as you go.

Digital Vs. Analog

Kleon also writes about how he divides his desk into digital and analog tasks and materials. He goes back and forth between the two modes very intentionally. Even if you aren’t an artist working with your hands, it is important to get away from your computer. Our brains respond differently to physical and embodied tasks. If you give your brain and body different surroundings, it is likely you will free up new ideas and insights. My favorite way to get the creative juices flowing is to take a walk through the woods with my dogevery morning. On the walk, I notice if I am not listening to podcasts or messing with my phone, I tend to come up with a lot of ideas at this time. Getting away from digital distractors is an equally important piece of the creative process.

I hope some of you are inspired to give this book a read. I definitely found it inspiring and encouraging for my own inner solopreneur!

Angela

Image Source: Austin Kleon

What is a Solopreneur?

What is a Solopreneur? At Peace With Money

An increasingly popular term around the internet’s business and finance spheres, “solopreneur” is often used interchangeably with “entrepreneur.” The two are definitely not one in the same.

There are a few key differences between solo- and entrepreneurs. All lie in the mindset, business approach, and ultimate goal of the business owner. First, solopreneurs often are very content simply doing the work their business centers around. Often, they may be specialists of some kind, like freelance writers or cabinetmakers. Related to this, solopreneurs are more likely to either wear many hats and take care of the various business tasks that need to be done, or contract them out to other specialists. Rather than hiring new people and delegating or outsourcing to them, their preferred practice allows them to keep control on the central business ideas and outcomes. For example, many solopreneurs may choose to hire the help of a bookkeeper and profit strategist. They can receive assistance with their finances while still being heavily involved in all elements of their business, including the ones they love the most.

A willingness to be versatile while maintaining control over the business’s central concept means solopreneurs are also scrappy and economical. They can start businesses with very little money and don’t often look for large investments.  Similarly, solopreneurs aren’t looking for a buyout. Rather than selling off to a larger company, solopreneurs dream of sticking with their business long-term. They are passionate about their business idea and enjoy the work it requires.

What is a Solopreneur? At Peace With Money.com

This scrappiness, passion, and versatility is what I love about solopreneurs. I’m a solopreneur myself! I understand the challenge and reward of starting and sticking with a businessyou love.

I also understand the financial oversights that befall some of us. Your business isn’t making you any money? Trust me, I’ve been there. That’s why my focus is helping solopreneurs get back on their financial tracks, so you can figure out how to align your business profits with your life goals. Isn’t that what your business is really about?


Angela

 

Image Sources: 1, 2

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