No matter what the reason for starting your business (freedom, passion, an idea, tc.) you will not achieve your goal unless your business creates a good income. A question I hear often from solopreneurs is: how can I grow my income?
Great question that has both simple and complex answers.
The simple answer goes something like this:
Cash goes into your business. Cash goes out of your business. The remaining cash determines how much income you can take.
Yeah, I know you knew that already. But did you dig deeper into the question? Probably not.
If you want to get control of your business and grow your income, it’s time to get interested in this simple money in/money out idea.
What non-financial activities (like the number of sales calls made, the number of page views to your website, etc.) actually leverage money coming in? What activities leverage money going out of your business? What do you do with the leftover cash?
Sit down for a minute and answer these questions? Could you answer them? Partially? Not at all?
If you can’t answer these questions, you have no way of growing your income. You have to know what matters and why it matters.
If you’re not interested in these questions then you will always be just getting by.
Also published on Medium.