During today’s newsletter, I thought it would be beneficial to talk about how to make and sustain change in our businesses. It’s easy to fall into the trap of believing that sweeping changes are necessary for success. We often think we need to overhaul our routines or adopt drastic measures to make progress. This is common in managing businesses, employees, and in basically every aspect of our personal lives as well. There has to be a better way right?
Have you ever set a goal to lose weight at the beginning of the year? We all make big goals like this and often make drastic changes to achieve these goals. When we want to lose weight, we often start aggressive exercise and diet programs, but how many times do we make it past a week or two before our goals are abandoned? The challenge is that these big changes often go completely against our current habits and routines. They are uncomfortable and, because we are creatures of habit, they are not easily sustainable. Research and experience shows that leveraging your existing habits can be far more effective and sustainable.
Big, dramatic changes can seem exciting, but they often come with a high risk of discomfort and failure. Our daily routines shape who we are and how we function. Rather than trying to force major changes, we are proposing that we use our existing habits to accomplish our goals. For example, instead of going from never running to running 5 miles a day, perhaps you could start by walking on the treadmill while you watch tv for a few minutes every day. This will not be that big of a lift, and then maybe start jogging during the commercial breaks. Pretty soon, with these little changes, you will easily be running every day and not even noticing how much you’ve changed in the process.
I want to go through some really crucial goals and changes that every business owner generally wants to make, but first, here are a few reasons why we believe this would be more successful as we work on positive change in our businesses and lives.
1. Making small tweaks to existing habits is typically less daunting than overhauling your entire routine. This approach minimizes resistance and makes the transition smoother, increasing the likelihood of long-term success.
2. Your current habits are already integrated into your life, which means they’re part of a system that’s working for you. By building on these established routines, you can achieve your goals without disrupting your entire life.
3. Small, incremental adjustments are more sustainable than large-scale changes. They allow you to gradually integrate new behaviors into your routine, making it easier to stick with them over time.
4. As you make progress with small changes, I promise you’ll start to experience a boost in motivation and confidence. Each small win reinforces your ability to achieve your goals and makes you more excited to continue working toward your goal.
Now, let’s talk about a big goal every business owner wants (and needs!): increasing and maintaining profit.
Most entrepreneurs spend countless hours working to grow their business, all with the dream of turning it into a large enough business to support the life they want and achieve their dreams. Sadly, for most business owners, taking a profit, or even receiving a reasonable paycheck feels impossible. In reality, for most small businesses, as the business grows and revenues increase, expenses increase just as fast or even faster. It feels like we can’t keep up. We often fall into the trap that if we keep slaving ourselves, all we need is that one big client and we’ll be set. This rarely ever happens though and can leave us discouraged.
We want that to change and there is a very simple way to do it! Just as I mentioned above, let’s work with our existing habits to make positive change in our business. One of the most prevalent habits entrepreneurs have is called “bank balance accounting”. We don’t look at the profit and loss or balance sheet to make decisions or know if they are able to pay the bills this week, we look at our current bank balance, and if there’s money there, we can spend it! Most accountants will say, DON’T do that, but that’s just not how our brains naturally work. What I’m suggesting is– let’s use that natural thinking and habit to our advantage! This is what Profit First is all about.
If you haven’t read Profit First by Mike Michalowicz, start reading it today! It’s a fantastic and simple tool that is guaranteed to make any business profitable if the principles are followed. Here’s a link to the amazon page:
Click here to purchase this book on Amazon
If you email me, I can also send you the first 2 chapters for free!
As a summary, Profit First teaches us to use these natural habits that entrepreneurs have to make simple lasting changes in our business that lead to permanent profitability. The Profit First system is very simple. Before paying bills our normal way, we separate our profit out first into a completely separate bank account. Now, with the amount left over, we pay our bills with the funds available to us in our operating account! We always spend what we have available to us. So now, if we have less available (because we already accounted for profit), we will force our business to operate on less and achieve the profit and success that we want.
Remember, success doesn’t always require grand gestures. Sometimes, the key lies in making thoughtful adjustments to the habits you already have. Embrace this approach and watch as your goals become more attainable and your journey more enjoyable.
I understand this is a simplified summary that is discussed and explained through an entire book, but I’m hoping this can at least pique your interest so you will decide to look into it more yourself. If you have any questions or would like a partner and guide to help you through the Profit First system, we are here for you! I’ve included a link at the bottom of this article so you can set up a free call with us to learn more.
Best of luck to you and your business!
Click here for my calendar to schedule a call or meeting
Adam Litster
Certified Profit First Professional and Pumpkin Plan Strategist
(816) 500-5779
