Focus on profits, not revenue
When starting a home business, many people concern themselves
with growing revenues. New business owners want to figure out how big they can get
their business in terms of new customers, products sold, or gross revenue.
It certainly can be good to grow revenue, as it means your
business is growing.
However, it is extremely important to look at profitability. Because,
when you are growing a profitable business, you will be able to use those
proftis to grow your business further. Plus, by growing as a profitable
business, as you get bigger, you can better help yourself continue to be
profitable. Granted, sometimes it is faster to grow a business without
learning about profitability - but then some of those businesses are never
able to turn a profit.
So, if you grow your business to be a profitable one, even if slowly, at
least you will be making money. And, that money, can be used to grow further.
And then, as long as you continue to stay profitable, growth will always be a
good thing. On the other hand, if you keep growing your business, and it
isn't profitable - well then you may never be able to make it profitable. And,
some of the added growth may do more harm than good.
So, yeah, sometimes its tough to be patient and limit growth in exchange for
profitability. But, working for yourself ain't easy - and when you can
actually turn a profit - its a good thing!
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