So.. What's Holding You Back?

By Whitney Hammond

Colours create energy for us, some negative and some positive. Knowing the positive characteristics of colour can help us with that “where energy flows, focus goes.”

Green is a colour about Space, Heart, and Choices. Let’s look at What’s Holding us Back. In business, we want to end up with the “shiny side up.” It’s a saying we have in aviation which could be translated into “We want to be as profitable as we can.”

We became an entrepreneur because of Heart, Space and Choice! Let’s break this down:

HEART: An entrepreneur finds their passion, their love, enters their Zone of Genius and carries their product or service to the world. IF you are in a business that is NOT YOUR PASSION: STOP and find your passion. We must believe in our product or service to such a level of passion, that we would SHOUT IT FROM THE ROOFTOPS. This is the beginning of our success. We love our business so much, that all we want to do is share it.

SPACE: Many of us choose to become an entrepreneur to create freedom and space in our schedules. Although at times, it doesn’t feel like this, as we can work extra-long hours, we truly are working for our baby, for our creation, for our future and to build our wealth.

CHOICES: The ability to make our own choices and not be micromanaged is our dream come true. Total freedom to choose as we please and build it as we wish. We have the ideas; we have the passion and the time to do it.

SO...HOW DO WE MOVE FORWARD EASILY?

VISION

Write out your vision. Pin it to your mirror or fridge. We need a clear vision of how this business should look, flow and profit. Once stated, it becomes easier to block out the noise and focus on your mental picture.

I have run my business for 25 years, and although it’s very profitable, it isn’t easy at times. I do update my vision from time to time as I master. Originally it was:

• Build a steady stream of revenue and machine to the process business.

I focused on this for quite a few years to now:

• I’m a great leader who attracts incredibly committed staff. Updating vision is perfectly ok as new struggles will pop up. Once the steady flow of business arrived, I needed more staff. Each time we solve an issue, it creates another, this is what growth is about. Remember, we chose entrepreneurialism for challenge, growth, passion, and reward. No better arena than this.

FOCUS ON THE OUTCOME

Now that we have a vision, we can focus on the outcome that will lead us to this vision. This may be the most important point. RUTHLESSLY cut out any noise or chatter that affects our ability to keep our mind focused on the outcome. Distractions are nothing but a nuisance. People’s opinions, which by the way, do not track our outcome, can be filed into the “naysayer’s” bucket. Unless we have a board, or committee where we can weigh strategies, keep the noise out of our sphere.

PRICE YOUR PRODUCT OR SERVICE FOR IT TO BE PROFITABLE.

Am I worth it? Yes! Business is built on supply and demand. When demand increases, price increases. When demand is low, our prices may need to be lowered. Business is not only about serving, but also about being profitable; no profits, no business. In order to determine how to price, we need to know the cost of our:

• overhead (rent or mortgage)

• cost of goods

• our hourly rate

• money to put aside for “winter.” (Winter is a term we use for when business declines or economies struggle)

• 15% minimum share to add to our retirement fund (we do need to eat when we stop working, which could be again, economies, disability, or disruption) BE PREPARED.

• vacation fund as we do not have vacation pay

• income tax and HST reserve

Recently a female realtor friend asked me if I thought she was worth it. She is HIGHLY paid being in the real estate business for over 40 years. Yes!! When we stay in the same business, as both she and I have, we become EXTREMELY WORTH IT. Time and repetition teaches us to be exceptionally efficient bringing us to our outcome nimbly. We become “in the flow.” And this is the sweet spot as a business owner. Therefore YES, charge for it, you’re worth it.

In time, we develop an hourly rate. We know the clients we want to work with. In the beginning, anyone who breathes is a prospect, and in time, we determine our ideal client, and we work in that arena.

TRACKING

Track your business every month. It’s particularly important to work clearly. Not knowing the necessary numbers will have us all working blindly; rudderless as we say in aviation.

Build a revenue model: a = (b x c ) x d

Where: a = gross revenue; b = # of clients; c = size of sale

d = the number of cycles (times you have to do it) to increase revenue

EXAMPLE:

$100,000 = (50 clients x $2000 price of good or service) x 2 cycles = $200,000

Each person will develop their own ratio. When established, your ratio may change to this:

40-35-25

This is my ratio that I have used faithfully for decades.

• 40% of my gross revenue: maximum pay to myself

• 35% of my gross revenue: maximum cost of goods and overhead

• 25% of my grow revenue: goes into my retained earnings

By using this ratio equation, I can determine, when to hire more, when to expand and never go broke as I have built in savings.

• 40% Prevents me from being an hog and over spending

• 35% Keeps my cost of doing business in line

• 25% Allows me to be an investor

Ask for help if this part doesn’t make sense. It can make us or break us! I highly recommend that we all work at this, this truly is the secret sauce in building a business.

INVESTING

Put a percentage of your revenue away each month, even if it is small to begin with. Add 15% to the cost of doing business to allow a budget rate for your retirement. 15% is not a magic formula, it is only a number. Working and having nothing left over for ourselves is not the fruit of being selfemployed. A business owner’s goal is to use their passion to help and expand others, create space and freedom for themselves and have choice in life to go and be what they want to be. Working just to make ends meet is not the goal of an entrepreneur.

NEVER, NEVER EVER GIVE UP.

Surround yourself with winners. Develop friends and colleagues who are like minded. Positive energy is contagious and so is negative energy. Stay with the positive.

Being in business is one of the best ways to develop and grow ourselves to the best possible version of ourselves. Sharing ideas, experiencing more in life, sharpening our communication skills, and building an empire to a place of comfort where we can give back to others who may not be as advantaged as us. It is in the giving, that we receive.

Develop your backbone, jump into life and have fun. Know your worth, and charge for it!