In this first of 3 videos, I'll show you how to prioritise money better so you can drive down debt quicker than ever and increase your savings and investments.
In this video, I'll take you through The Six Profit drivers.
Did you know that only 60% of business owners in Australia make a profit while 40% make losses.
The reason to these alarming statistics are not the lack of business opportunities or external factors like the economy, but it's because many business owners lack the mindset and strategy to make their businesses profitable. They don't know how to Make, Manage, Keep and Grow Profits to become financially self made and self reliant, achieving ultimate financial freedom.
The key to building a successful and profitable business is focusing on these 6 key profit drivers.
1. Lifestyle - How much you take out from the business for personal lifestyle for you and the family.
2. Personal debt - Be very clear on what your debt is (is it your home loan, tax, debt you owe others?)
3. Business debt - Your non normal every day debt to running the business but are Once-off such as Business payments, loan repayments equipment and lease vehicles.
4. Business Savings - You should be saving 3 months worth of cash liquidity to stabilise your business before you invest the money. If you don't have adequate savings, it will demoralise you and takes your focus away from growing your business.
5. Profit re-investment - In relation to savings, if you don't have enough cash, you might not expand on great opportunities.
6. Wealth creation - Very small percentage of people manage to build wealth using their business as a vehicle. So many business owners are caught up in living a consumer mentality (as a Lifestyle) and they are not able to invest their money wisely.
Most people just do enough to get by and fulfil their needs. They say they want to build wealth but their actions and behaviours tell a different story.
The key to building wealth using your business as the vehicle is giving attention to these 6 Profit Drivers.
When you do this, you will drive money out of the business (with the right advice from your taxation accountant) and build to build wealth and live the life you've always wanted to live.
Rob Kropp
Founder - Pravar
Are you a Trades, Construction or Service Based business owner turning over atleast $1M p/a, and want to release the time and financial constraints in your business & life?
Register for your FREE strategy call and learn how we can help you restructure your business in a way that quickly unlocks growth and profits enabling time freedom and most importantly reconnection with your family.
