In several of the virtual events I've been participating in lately, repeatedly the common thread among many of the ecommerce sellers was that they are stretched to the max; both in terms of cash and time. They were eager to learn the best software tools to be more efficient and how to market more effectively so they can grow their top line revenue. All with the goal of having more cash to afford them more employees so they could have more time. Unfortunately, that's a fallacy; and it leads to more stress. Let me explain why that is and what to do instead.
When Yes Should Be No
When sales increase and the business model is not dialed in, you are put in a position of increased stress. Additional sales can lead to additional pressure to meet inventory demand which requires cash. It requires additional infrastructure to manage the process of developing, purchasing, accounting for, delivering and marketing the goods. When the goal is sales without consideration of profit, you are basically saying yes to almost everything. There is no priority given to growing in a healthy strategic manner.
Warren Buffet once said, "The difference between successful people and really successful people is that really successful people say no to almost everything." This is the opposite strategy of growing sales by saying yes to almost everything. The trick is, how do you know what to say No to?
Find Your Life Purpose First
For me, that has become a very personal question because I realized the answer is found in identifying your purpose. What do you really want to accomplish with this one life you have been given? When you look back over your lifetime, what patterns do you see? Not just the patterns in your life, but in those lives you've touched. Your purpose is not just what you do, but the impact on others because you do what you do. Once you have identified your purpose, and you feel it resonate deep in your being, then you have the filter that helps you say Yes and No at the appropriate times.
Carry Your Life Purpose Over to Your Business
From the business aspect, you can look at your product offerings and be more selective. You can look at your marketing and operating expenses and know that they are moving you closer to your purpose. You can look at how you focus your time and energy and know if it will lead to work that you enjoy and feeds your passion or work that drains the life out of you. Looking at these things honestly and critically, and asking yourself if they help you follow your purpose will make it easier to decide if you need to say Yes or give it a firm No.
I have worked with clients for years helping them manage their money and during that time, I've learned that money is a tool. It's just like the software you use or hiring additional employees. It helps us accomplish something. The key is getting really clear on what that something is; your purpose. That level of clarity will allow you to allocate your resources, both time and money, in a way that yields great rewards.
Interested in Profit First?
If your ecommerce business isn’t where you’d like it to be in terms of profitability, check out my book, Profit First for Ecommerce Sellers. It answers important questions about how to implement Profit First in an ecommerce business. Take control of your money and your business, and put Profit First to work for you!
You can also sign up for the Profit First for Ecommerce Sellers Online Course. As a Mastery Level, Certified Profit First Professional, I will teach you why Profit First works so well for ecommerce businesses and the particular challenges for businesses that have physical products requiring inventory management. You will learn how your behavior drives your money management habits for your business and how you can set up your business bank accounts to work with your habits.