Every week, store owners in our community ask a different version of the same question: How do I make more profit? It’s a question that often comes with an equal measure of aspiration… and frustration.
A More Profit Mindset
Now, before you rush to cash management strategies – action steps to take, there’s a crucial mindset shift you must make to make a new more profit strategy stick: You need to put profit FIRST.
Now, I can hear some of you saying, “But Cathy, won’t that leave me with insufficient funds for inventory, payroll, rent, and other expenses?”
The answer is a resounding PROBABLY, and here’s why that’s exactly what you need:
The reason you might not be making more profit is that your expenses are swallowing it up. As long as you let those expenses take the first bite of your revenue, waiting to see what’s left for profit, you’re destined for a perpetual struggle. Sure, you might have some extra cash after a stellar month, but before you can allocate it to profit, it’s already earmarked for something else—a late invoice, a paycheck, restocking a best-seller. Sound familiar?
As long as profit takes the backseat, your expenses will continue to steer the ship. The game-changing move here is to put profit at the helm, making it the priority. This mindset shift forces you to take control of your expenses, aligning them with the reality that there’s only so much money left after profit takes its share.
More Profit Discipline
I’ve got a confession to make, a tale from the early days of my retail journey.
If someone had asked me back then, “Are you a financially disciplined store owner?” I’d have shot back with an enthusiastic “Absolutely!” No hesitation. You see, I’m a numbers girl, a spreadsheet enthusiast. I could crunch those numbers with the best of them. But here’s the kicker—it was all a facade, a well-disguised illusion of financial prowess.
Here’s the vulnerable truth: in those early days, I was overspending. Despite my love for spreadsheets, profit wasn’t exactly doing a victory dance in my bank account. There were months — brace yourself — when my sister and I didn’t even take a paycheck. Ouch, right?
Now, if you had asked me what the issue was, I would have pointed fingers elsewhere. “It’s a sales issue,” I’d confidently declare. “Or maybe a traffic problem.” It was always something external, never a discipline issue on my end. Oh, the tales we tell ourselves!
But you know what I really needed? It wasn’t more foot traffic or a sudden surge in sales. Nope. What I needed was a clear roadmap—a crystal-clear direction on how much to allocate to each expense. And here’s the real kicker—I needed the discipline to follow through.
It’s a common trap, isn’t it? We convince ourselves it’s everything but us. Well, let me drop a truth bomb: You CAN make financial discipline your reality. You absolutely can break free from the cycle of overspending. Picture this: a journey where more profit becomes your guiding star. Your business deserves it, and more importantly, YOU deserve it.
More Profit. Together.
Now, let’s circle back to this notion of Profit First. Imagine it as your financial North Star. By flipping the script and putting profit at the forefront, you’re not just managing expenses; you’re commanding them. It’s a game-changer.
Now, if you’ve delved into the Profit First™ book, you might have come across suggested allocations: 5-10% to profit, 50% to owner’s pay, 15-20% to taxes, etc. However, those allocations don’t necessarily fit the retail business. And on top of that, when you’re just starting, your allocations will look different anyway. Perhaps you’re aiming for a modest 1% to profit initially, adjusting as you gain more control over your expenses.
This is precisely why I created Profit First™ powered by RETAILMavens — to assist retail store owners like you in implementing this brilliant system tailored to the unique challenges of the retail world.
If your inner entrepreneur is nudging you to put profit first, the doors to our 12-month Profit First powered by RETAILMavens program are wide open.
As you embark on this 12-month journey with us, we start with a deep dive—a Profit First assessment that dissects your current expenses. Think of it as a financial GPS recalibrating for your business’s unique terrain. We consider your goals, your aspirations, and craft a step-by-step plan to kick off this transformative journey.
Month after month, we’re by your side every step of the way, reviewing progress, adjusting allocations, and celebrating wins. The immediate peace of mind you’ll experience, knowing you’ve got a support system guiding you toward more profit, is nothing short of liberating.
Watch your profit account grow month by month, envisioning where your business could be a year from now with this commitment.
Our application process is your first step toward this transformative journey. It guides you to a call with our retail expert, offering clarity on what being part of this program can achieve for you.
Your retail business deserves this radical shift, and so do you.
The Profit First powered by RETAILMavens program is now open. If your gut is telling you it’s time to put profit first, apply now, and let’s make your retail dreams a reality.