What Does Revenue Enable?

More Money More Problems? Or More Money More Opportunities?

What happens when you get more revenue coming in the door? Was The Notorious B.I.G. correct when he said, “Mo Money Mo Problems”?

So the short answer is no, but there for sure could be an argument that more problems do arise as you gain more revenue. However, we’ll save those discussions for another day, for now we’ll focus on the positives. Just remember to understand your profit and lose statement (P&L), and track your expenses. If you need help with either feel free to reach out.

So what good comes from additional revenue. Below are a few ideas, and these are pretty straight forward and easy. This is by no means a complete list, so I’m sure you can add some more in the comments below, I welcome input! This are also not numbered because there is not one that is of more importance than the other, it will just depend on your situation.

• Help your customers

• Invest in new technologies

• Grow your team

• Your impact on the world

We’ll Dig a bit deeper into each one now, with a few thoughts. Again I welcome any feedback or additional thoughts in the comments below.

Help your customers

More revenue means more funds to spend on resources. These resouces many lighten your work load, think virtual assistance, software upgrades, or maybe just more buying power. That allows you to be more efficient to drive costs down for your company and your customers. These resources will also allow you to bring more solutions to market as well. You will be able to offload some tasks to software or an assistant and then spend that time thinking about the business. What new products or services do you need to bring to market. It will allow you more time to engage with your customers and learn about their struggles and what they need next. More revenue allows you to grow and listen more. Do not underestimate the value of a good virtual assistant. If you want some more guidance there I would recommend Michael Hyatt’s book, “Your World-Class Assistant”.

Invest in new technologies

This one is similar to the additional resources, but I would think of this one as almost a merger and acquisition type approach. While spending on resources makes you more efficient, investing in new technologies makes the company more efficient or opens more doors for the company. Think about needing to by new equipment for the company, like mowers, or trucks for a landscaping company. Computers and mics for a band or podcasting company. There are products and services that you need to buy to run your company. Generating more revenue allows you to self fund those needs in the future, less debit which is always nice. It also allows you to trial some new technology. Maybe there is a new machine that can make 20 additional products per day, maybe a new weed eater will let you edge and weed eat all in one. New products and services are always coming to market. Generating more revenue helps with that. This is not a technology per se, but do not underestimate the value of investing in a coach here. It is one investment that seems like a lot, but will continue to pay off for years down the line. You can avoid some mistakes with a good coach and always have someone to do to for advice or a sounding board.

Grow your team

Some folks actually start their own company to never have to manage anyone ever again, and that is a perfectly fine goal. Someone that does not want to lead can really put a sour task in peoples mind about leadership. However, those that are interested in building something with a team, you have to have revenue to fun that. Without revenue you cannot afford to pay people. Once you have a good consistent flow of revenue you can start to think about setting some of that aside for a team. Think about full time vs part time and make sure you account for benefits in your expenses if that is something you want to offer. Generating consistent revenue will be a key to making sure that you can afford your team for years to come. That also gives your team peace of mind to stay focused on what you hired them to do and not worry about if they will have a job tomorrow. Plus it’s really rewarding to be able to build a kick-ass team that grows with your company. Nothing is better than starting something from nothing and being able to promote others along the way. Letting them grow beyond their first roles into new roles and sharing in the success of the company. Everyone likes to be part of a winning team and we all appreciate the value small businesses bring to the world.

Your impact on the world

This one may seem a little woo-woo and using a quote from Steve Jobs probably does not help, but hey Apple is Apple still today.

We're here to make a dent in the universe. - Steve Jobs

There’s some reason that you started your company/small business. Maybe it was just for more flexibility and not to have to punch in and out 8-5. But I’m guessing there is some passion that you share around the product or service that you are offering. There’s some need for it in the world. So do out there and change the world in only the way you can. Yes, most small businesses fail within the first 5 years, but not all of them do. So, why not you? Why can’t you be the successful one? You can and you will be. Just stay focused and remember the dent you are trying to put in the universe.

A good resource to check out is Andy Byrne’s Newsletter

So remember:

1. Generating revenue is a good thing and “Mo Money, Mo Problems” is not true when it comes to your revenue stream.

2. Once you have revenue, spend some on your business systems and new tech.

3. Make a dent, even if it’s a small one, every dent is meaningful.

I hope you found some value here today and only ask that if you did please share it with a friend or 12. :-)