Q: How do I get over the guilt around making money and profiting in business?
Yes. This is a real question. Asked by a real person. And it's a real issue many of us struggle with.
Profit is NOT a dirty word. Nor is it opportunistic, greedy or capitalistic.
On the contrary, it's bottom-line profit that clears our path to long term stability and security. It's our retained earnings, our safety-net. Make no mistake about it, you can’t afford not to PROFIT.
Unfortunately, the vast majority of business owners don't have a healthy bottom-line, and when/if they do, they tend to see it as extra money in the bank and run out to spend it. But they're not alone.
Year-to-date, Pier 1, Bench, Gap, Lowes, Forever 21, and Gymboree are among the latest in a growing list of retailers closing their doors or filing for bankruptcy. Even Pizza Hut announced this month, it’s considering bankruptcy.
Experts weighing in suggest it’s because they haven’t kept up with consumer shopping behaviours. That they’ve lost the connection to their customer. Fair enough, but declining sales and deteriorating consumer engagement, in my opinion, are some of the final indicators, not the early ones, pointing towards a broken revenue model.
It’s bottom-line profitability, or lack thereof, that’s the flashing beacon. Month-over-month it shouts out, desperate to get our attention, THE MODEL IS FLAWED....FIX ME!. THE NUMBERS AREN'T ADDING UP THE WAY THEY SHOULD. It’s the bottom-line that’s demanding a financial intervention.
This is our call to step up. And our advantage in this situation, as a small business owner, is our size. Being “small” makes us nimble, it makes us fast. It allows us to pivot and pivot quickly. So why hesitate to profit? Why carry the guilt?
Perhaps it’s because we don’t know better. We weren’t taught to profit. We weren’t taught to drive bottom-line results. Instead we're encouraged to drive topline sales.
Perhaps, it’s the stigma attached to profit that keeps us from showing up and owning up when it comes to our bottom line. The perception people may have of us if we're motivated by profit.
Listen, I’ve been there before. I’ve paid the price of living through a business bankruptcy. And I can tell you, first-hand, I rather deal with people’s perception of me making money, than that of me losing money.
So to answer the question above...Adjusting your mindset about profit is easy. See it as a necessity, as a lifeline, a non-negotiable. Because, that is in fact exactly what it is.
If you're looking to profit,or want to learn more about how to build bottom-line into your business budget, check out the upcoming bootcamps being facilitated by Nail the Numbers Pros across the country.