The concept and topic John talks about in this episode is ensuring that you get good returns on your investment.

IF IT DOESN’T ADD UP, DON’T DO IT

The quote is “If it doesn’t add up, don’t do it” can actually be applied in all areas of your business. Advertising is a prime example. If an ad is run and does not get an appropriate response, or at least one within a recognized a period of time, there’s no point in keeping that ad running. It’s wasting precious time and money. Change the ad or where and when it’s running.

SET A CRITERIA

Make a list of the criteria that the business must fill and make sure that this list is filled before you commit yourself. If you’re not sure, get help. Two heads are always better than one and prevention is always better than cure.

GET BENCHMARKS

A great idea when looking at business is to check the industry average and get benchmarks, see how your business actually compares. Given that 4 out of 5 businesses go broke in the first couple of years, the reality is you want to do better than the average because the average part has already gone broke.

THE BOTTOM LINE

Finally, the bottom line is where your figures must add in the net profit margin. To get this figure, a business must add up all its expenses including the appropriate wages for the hours put in for the business plus interest on capital you put into the business. This will give you your real margins.

Business is work, but it should also be fun. And you can have a lot more fun making profit and ensuring a good return on your investment than you will having something that drags you down every day.

RESOURCES MENTIONED

CEO on Demand website – www.ceo-ondemand.com.au

More Profit Less Time website – www.moreprofitlesstime.com

THANKS FOR LISTENING!

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Until next time!

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TRANSCRIPT: PODCAST EPISODE 10
Title: Ensure that You Get Good Returns on Your Business
Date Published: August 31, 2015
Running Time: 09:03 minutes

Hi this is John Millar, I’m the naked business coach, stripping business back to the bare basics.

The concepts and topic, I want to talk to you today about in your business, is ensuring that you get a good return on your investment.  Now let’s face it, going into the business is all about making a profits, so if your business strategies aren’t adding up to business profits don’t do it or do it differently. To be a business, that is a real business, your business must give you a good return investment plus a full wage for every hour you spent  working in your new business. You can then pay someone to do your job, and then the business can profits are not being affected. The quote is “if it doesn’t add up, don’t do it” . It can actually applied in every areas of your business .

Advertsising are prime example. If an ad is run and does not get an immediate response, or at least one within a recognized a period of time, there’s no point in keeping that ad running. It’s wasting precious time and money. Change the ad or where and when it’s running. Increasing your team may also add up to extra dollars, perhaps a business owners should actually consider setting trainings, and all parting systems in place so that juniors can be hired to follow these systems rather hiring seniors who  got the head knowledge on how it should be done.

Now alternatively, the business could also look at new machinery or technology instead of more people, look at what most effective for you and your business. If you want to buy a business, then a fee cost absolutely has to stack up or at least have the potential to do so.

Make a list of the criteria that the business must fill and make sure that this list is fill before you commit yourself. Many people buy in to something, believing its gonna fulfill their needs to discover that the figures weren’t accurate,or  just didn’t stack up.   If you’re not sure, get help. Two heads are always better than one and prevention is always better than cure. A great idea when looking into business is to check the industry average and get benchmarks , see how your business actually compares . Given that 4 out of 5 businesses go broke in the first couple of years, the reality is you want to do better than the average because the average part has already gone broke.

Finally, the bottom line is where your figures must add in the net profit margin. To get this figure, a business must add up all its expenses, including the appropriate wages for the hours put in for the business plus interest on capital you put into the business. This will give you your real margins.

Again, if it doesn’t add up don’t do it, must be applied regularly. Don’t wait until the end of the financial year, to find out whether or not you made a profit . Businesses work, but is should also be fun , and your gonna have a lot more fun making profit, and ensuring your good return on your investment. Then you will be having something that drags you down everyday .

This has been John Millar the naked business coach  stripping business back to the bare basics. Check out our website ceo-ondemand.com.au or  www.moreprofitlesstime.com. We’ve got lots of tools, tips strategies and lots and lots of extras available for you. And I look forward to hearing more from you so that we could keep coming back to you with more great podcast . Thanks so much, until next time , have fun and make sure you get a good return on your investment and your business.

John Millar

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