Welcome back to Instagram for Business with The Social Focus!
In today’s episode, your co-host and Brand Photographer, Nat, is running the show solo. She dives into a really vulnerable story about her business.
Her worst profitable year in business.
Being in business for 18 years, she was surprised that this occurred. And shares the mistakes she made.
From paying employees above what she normally pays.
To almost never checking her books – which means she let invoices go unpaid, she didn’t look at her expenses and if they were required to run the business, and she didn’t oversee if her current rates for her services were high enough.
And lastly, being scared of charging more for her services.
Did you know that only 40% of businesses make a profit?
That’s a pretty interesting stat. And actually kind of scary. So how do you ensure you’re not in the 60%? Well, Nat shares some tips as well.
So the most eye-opening day came. It was the end of March, and she looked at her bank account after paying employees, and there was $3.25 left in her account.
Her stomach sank, and she wondered how this happened.
It got worse. She had a conversation with her bookkeeper the following week, and she shared some more upsetting news.
She had profited 1/4 of what her business normally profited.
You could call this her rock bottom moment. Rock bottom moments are actually a gift. They can be the wake-up call you need to make big changes.
Especially as Nat thought back about that year in complete confusion. Because that year prior she had worked harder than she ever worked. She worked 65 hour weeks and ended up with full burn out.
Here are 3 Changes she made right away
1. She made a decision to surround herself with successful business owners. People that inspired her and she wanted to be more like.
2. She broke down her profit and loss. And really deep-dived into expenses. And ultimately in the end removed many of those expenses for good.
3. She became comfortable in charging more for her services. There was a lot of fear around this part of her business. But she knew that this was one of the most important parts of the puzzle.
There was a huge realization at the end of this episode that might surprise the listeners. Also, a big-time happy ending.
Let’s put this episode into focus:
1. Burnout is real. Be sure to listen to your body
2. Look at your books (bookkeeping) more often. At least quarterly
3. Surround yourself with people who are successful in their business
4. Know your worth
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