Let’s start with a shameless plug! JKL Associates gets involved in lots of business transition points. Helping startup entrepreneurs, moving a startup into a more stable mature phase of operation and helping the business leadership transition to a perpetuation strategy for their asset and legacy. Each of these transition points in the business require facilitated focus so that not only can a strategy be defined but more importantly action executed, and accountability enforced to realize the migration to the next phase of business life. Enough about JKL Associates, but this will all tie together as we look at the aspect of never stop selling.
A short time ago I was meeting with some business owners. One was transitioning out of the business and perpetuating the business to the other newer owner. During the course of the conversation the newer owner made a comment about his primary role going forward and I had to stop him in his tracks right there. It might have been inadvertently stated but he basically said that now because he was the owner, he did not have to sell anymore.
As you might imagine, and for those of you who have worked directly face to face with me, my intervention on this matter was not some subtle thought after the newer owner was finished with his statement. No, I jumped in the conversation and interrupted the moment to create a “Teachable Moment” in the mind of the new owner. As an owner you might employ salespeople etc., but as the owner, it is your personal obligation to always be selling for profit. I did this not only for his benefit but equally for the transitioning owner’s benefit as well. You see, the selling owner will need to get part of his payout from future revenues of the business and it is critical that sales, profit, cash flow etc. are maximized for all involved.
The point of this week’s insight is to always be aware of your wondering thoughts. As you lead your team to growth you need to mentor them not just in the technical and intellectual aspects of the business but also in the fundamentals of “Cash is King” and profit proceeds before expenses or all you are in business for is to pay other people.
I have witnessed too many good businesses lead by good leaders get to a transition point and not fully transition this very basic understanding of always selling and always making sure profit is the objective. I do need to clarify that when we are speaking of profit in small and medium sized businesses, I’m really focused on CASH and not some end of the month, quarter or year financial statement which your CPA produces and tells you if it is black or red. You made money or lost money after adjustments. Last time I checked, you can’t take your family on vacation or pay for college or make the mortgage payment with adjustments. Yes, it is wonderful to allow your CPA to gather you additional value in your profit line with these magic tricks of the accounting code but as business leaders we need cold hard cash profits to ultimately be successful and turn your business from paid job into career financial portfolio asset.
This peak your interest? Give JKL Associates a call at (313) 527-7945 or (407)984-7246 to begin engaging for PROFIT.