Achieve Your Freedom With Your Financially Fit Business
By: Ruth King
First, so what, why should you want to have a financially fit business?
It gives you freedom – It’s the tool that gives you the ability to do what you want to do.
There are three types of freedom:
- Money freedom
- Time freedom
- Location freedom
Which do you have?
A financially fit business gives you all three.
Yes, you love your business. You’re generating revenue and profit and have enough recurring revenue so that you don’t worry about money, either business wise or personally. You can buy what you want. You may have achieved money freedom. Check off this box.
But, do you have time freedom? Can you work when you want to? Are you a slave to your business? Does it control you or do you control it? Do you have a great management team who runs the business on a day to day basis and you oversee – look at the metrics – and make sure the business stays headed in the right direction?
Many business owners I know have money freedom and not time freedom. They ARE a slave to the business.
Location freedom is the third. Do you have the choice to live where you want to live, go where you want to go? Money and time freedom usually give you location freedom.
Over the years, I have worked with business owners who live in one area and manage their business in a totally different geographic area. How do they do this? Set up the metrics and oversight and hire excellent managers – who are well compensated on bottom line performance. And yes, they do visit the business – usually once a quarter.
Start thinking about your business as a tool. How can you use this tool to get what you want? How can you use this tool to give you things in life that you want to do?
The most important thing: Know how you generate revenue and maximize it
It’s not just service, project, replacement, etc. These are the results of how you generate revenue.
So, how DO you generate revenue?
For gyms, it’s the number of members…even more important, the number of members who renew.
For restaurants, it’s the number of meals. What is the minimum number of profitable meals do you need to serve each day? How can you maximize the number of meals you serve each day?
For home and business service businesses it’s billable hours. Your revenue production is based on how efficient your field labor is. If you pay your field team members for 8 hours a day, can you bill a customer for those 8 hours? If not, how many hours are actually billable?
If you are paying for 8 hours and only billing for 4 hours, then half their time is unproductive. If it is training, meetings, or something else that can help them do their jobs better, that’s fine.
The first step to your freedom as a result of your financially fit business: know how you generate revenue and maximize it every day.
If you would like a tool to help you achieve freedom, go to https://financiallyfit.business. Using this tool usually takes less than 10 minutes a month.
For more great business content see here.
Ruth King is known globally as the “Profitability Master,” and is a a thought leader in entrepreneurship and business. Her books have been recognized as among the greatest in numerous industries. Learn more about all her business activities here.
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