Written by: Oksana Irwin, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
The biggest problem with small and medium size businesses is that most business owners are ‘not good at math’. They don’t understand business economics and don’t pay attention to the key business metrics that make businesses successful. This is the single biggest reason why most small and medium size businesses fail or struggle miserably for years.
Business Is Purely A Numbers Game.
That’s just the simple truth. Most business owners treat their businesses like a hobby or a ‘job’ they created for themselves. They do something ‘they love’ or they are ‘good at’, or are ‘passionate about’. Meanwhile, they don’t have a good business strategy that would make them successful and their businesses profitable. They don’t pay attention to the numbers, which usually puts them into financial challenges and money struggles.
FYI. This has nothing to do with ‘the money mindset’. I am talking about pure business economics and winning business strategies that ALL successful businesses employ. Most business owners leave ‘the numbers game’ to the accountants they see once per year when they sign the year-end financials, ‘hoping’ for good news. To be successful in business – any business – you must master one skill: understanding your numbers and financial statements. I see a lot of great, hard-working business owners who work hard around the clock in their businesses yet can barely afford to pay themselves a living wage, let alone what they deserve for their enormous efforts.
Here’s A Standard Example I’d Give You As A Business Coach.
Company 1 Company 2
Revenues $1000 Revenues $100
Expenses $960 Expenses $60
Profits $40 Profits $40
Both of these companies have profits of $40. But which one would you rather own?
My answer: Company 2. Why? Because it has a much higher profit margin.
Business Tip: Throwing More Money At The Problem Will Not Fix The Problem.
If you are Company 1 and are operating on very low margins, ‘getting more customers’ by throwing money at Google or Facebook and running ads will not fix your problem. But it will add more stress, misery, and financial struggles and will pave the road to bankruptcy.
‘More marketing’ and ‘more customers’ is not always the answer. More passion, more commitment, working harder, improving the product, and working longer hours are not always the answers either. All of these ‘band-aid’ solutions often used by business owners do not solve the REAL (underlying) business problems. And no matter how many more customers they serve, they will continue to struggle. Indefinitely.
Accounting can be daunting and confusing, but the simple business success formula that I teach business owners at my Business Mastery Accelerator workshop solves ‘the mystery of the numbers’ and offers simple, tangible solutions every business owner can employ immediately to create sustainable success in their business. You don’t need an accounting or business degree to be competent in business and its financials, but you do need a proven business strategy and a business roadmap to run a successful, profitable, and viable business.
Scaling your business to the next level is a system. It is not something that happens on its own or by just working harder and longer hours. In fact, it’s quite the opposite.
Join me at the Business Mastery Accelerator workshop to discover how to scale your business into a million-dollar company WITHOUT having to compete on price, work long hours, or sacrifice your health and personal life. Register for the workshop here.
Sign up for a Business Mastery Accelerator workshop to discover the Business Success Formula that can turn any business into a success story in any economy.
Oksana Irwin, Executive Contributor Brainz Magazine
Oksana Irwin is a certified Mars Venus Business and Executive Coach, a Gender Intelligence expert, a best-selling author and a speaker. She is a multi-faceted, passionate entrepreneur who has been in the business world for over two decades and is well known in the online space for her transformational seminars and workshops.
She has helped many leaders, business owners and entrepreneurs create breakthroughs in their businesses, reach their goals and achieve success without compromising the quality of their lives.
She coaches business leaders worldwide in the Mars Venus business framework, systems and methodology that help them earn more money in less time and create extraordinary results in their careers, professional and personal lives.
