What’s up with everyone wanting, promoting and
manifesting 6 Figures in revenue?
Sure. It’s a GOAL, but why does it have to be YOUR GOAL?
I know plenty of business owners that make over 6-figures. I am truly happy for their success. Honestly. If that is a big deal for them, I am over the moon happy to celebrate with them.
But the truth is…many of them aren’t keeping much of the money in their own bank account.
Here’s the deal with all the 6 Figure stuff.
It is fairly easy to get to 6 Figures in REVENUE. Here’s my non-accounting take on revenue that you won’t find in the GAAP doctrine.
Revenue is the amount of money you make. It’s money that comes into your business. Period.
It doesn’t take into consideration the money that goes out of your business. The expenses you have to get to that 6-figure Revenue mark. You know that goal that our brain cooks up as a big ol’ milestone in our business that says, “Congratulations! You have arrived, you serious business owner."
I don’t know about you, but I am more interested in PROFIT.
Revenue minus expenses = Profit.
There are two ways to make more profit in your business. You either increase your revenue or decrease your expenses. It’s pretty basic math, right?
Expenses can get out of hand when we are running our business because keeping up with appearances that we are super “successful”.
Women entrepreneurs have to stop comparing their beginning to someone else’s middle.
Let’s get real. Expenses look like:
- Traveling all over the world to “close those deals” that never happen
- Attending “must attend” conferences
- Buying meals and entertainment with clients, wanna-be clients, joint-venture partners, and people who we want to impress
- Dishing out funds for marketing that doesn’t work effectively
- Overspending to have the coolest logo and website that reflects “your brand” perfectly
- Booking expensive photo shoots
- Hiring makeup artists, hair stylists, and fashion stylists to buy us fancy clothes (that match our website, of course) to look amazing for the photo shoot
- Paying for way too many coaching services when you don’t need them (quite yet)
- Paying for even more way too many personal and professional development courses to learn how to do everything in your business perfectly
- Purchasing technology our business is not ready for & we don’t know (or care to know) how to use it
- And…the list goes on and on.
But what happens is that we get so focused on the “6 Figure” goal that we forget to control the expenses thus leading to very little (if any) profit in our business.
We like profit – as that’s the fun money that we get to do great things with like pay ourselves, re-invest back into company, and even give money away to causes and organizations that we believe in.
The bottom line, have a financial goal but think in terms of PROFIT and control those expenses until you have the “fun money” to invest back into your business.
Now, if someone tells me they made $100,000 in profit this year in their business, then I AM IMPRESSED and YOU SHOULD BE TOO.