Last week, I was talking to a business owner whose company is in fast-growth mode, and who was looking for answers to some specific questions:
“Can I afford pay increases for my employees?”
“When can I afford to hire another employee, given the cyclical nature of my business?”
“Should I consider a profit-sharing plan for my company?”
By investing in advice and answering these questions, she would be able to retain her key employees and continue the upward growth trajectory that they were on.
Oh – and that trajectory happens to include 64% revenue growth and 125% profit growth, all in one year.
Fast growth? You bet. Financial decisions to be made? Yes ma’am! But then, this:
“That’s as much as an entry-level engineer earns,” she said, as we discussed the budget. Because I’m a bit of a smartass, my first thought was “Yes, but the engineer won’t be able to answer those financial questions, now, will they?”
But then I realized that that statement was an indicator of priority. Or, in this case, a lack thereof. You see, it’s not the investment, but the return on that investment that she should be concerned about. And prioritizing investments with big ROI’s will take your company to the next level and beyond.
So, as Tom Cruise explains to Cameron Diaz in the movie Knight and Day, “Out there, on your own, your life expectancy is way down here. With me, it’s all the way up here!”
For our business owner, “without me” looks like employee retention issues, cash shortages, uncontrolled growth, constrained profits and turning away big projects. “With me” means managed, profitable growth, key employees retained and engaged, and confident cash management, as well as increased profits and business valuation.
See, there are two ways to view spending money in your business. The first way is as expenses that have no ROI attached to them so all spending is money down the drain. The second way is to view the amounts expended in your business as investments. You actually change the metrics that evaluate their success or failure. A positive ROI adds value to your business and dollars to your bottom line.
If you want to build lasting value by placing a priority on those projects with a nice ROI, you’ll want to invest in good advice and work “with me.” But first, we’ll need to calculate the ROI on the plans you have in your head and prioritize the ones with the quickest payback and highest ROI.
Ready to start operating “with me” and grow your bottom line with confidence? Get started here.