I never knew I would turn out to be a good physics student. Of course currently I am more concerned about economic or financial numbers. I can still recall the graph of initial velocity, maximum height, and final velocity. Maximum heights according to physics entails the final height reached by an object from its initial velocity. I think I deserve an applause here, my brain is still picking, Hahaha. One's destiny always gradually unravels and hopefully I have had to align.
My love for business has grown overtime and I feel there will be no going back from here. I always like doing some assessment to draft out facts concerning a matter when it comes to doing business. What makes a business grow, what makes it fall and what can keep it stagnant?. The last two questions are never what we wish for as entrepreneur. Let's just use an illustration here, assuming you were planning to buy let's say a new equipment for your business worth $1000 within 6 months, what will you be looking at?
Without doubts, you will have to check your monthly realized profit. What is my actual gain after all expenses are deducted? We are looking at atleast $166.7 dollars monthly. What happens then if this profit is not monthly realized? It means this purchase will have to be postponed until and most times an abandoned project. We can say that $166.7 dollars remains the maximum height to pull out this transaction.
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This is why a lot of businesses fail or stay at struggling stages. They are yet to ascertain maximum height. There is always this regular advice of living below your means. A mentor once made a correction on this quote when he added the need to expand your means. Shrinking into a shell and settling for less won't solve any problem, it is better you know how much in actuality you need for your daily living and do your best to get that.
Same applies with business, until you are able to raise your needed least monthly capital, you are not able to scale. Months will come and go, days will turn into years and you'll be left frustrated. This was what I onced discussed with my copartner, the need for us to push business and ascertain a steady maximum height. This is where we will be able to think better and execute smarter.
Currently there are many loopholes left to be filled, more hands are needed, bills have increased, this already shows the need for us to step up and realize a tangible monthly profit. Without that, we will be stuck in business for a while. Profit is not actually what you make after expenses are extracted but rather a tangible needed profit when all gains are put together that can not only sustain a business but push it to its next phase.
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This is what I am really trying to send out to entrepreneurs especially. Your business destination for the next five years is dependent on project execution. Let's say you may be planning on owning your own business premises in the next five years. This can't come to fruition if the right numbers are not put in place. Do you even know what happens when an object reaches its maximum height? It is usually followed by a free fall (ease). I don't know if you are getting the entire idea here. You have to put in all necessary effort at the initial business stage to push to a green light profit.
Anything lesser than this is just you beating around the bush. I could remember my early days in business when I would deprive myself of so many things just to realize a certain profit. Of course, it was still not enough. I am not saying you should not look for possible forgone alternatives, this is very vital. Yet the truth remains, depriving yourself of quality health, food and other basic things to stay in profit is not a good idea. You are still at a loss (health loss). The way out here is to expand business by reaching your needed minimum daily or monthly service turnover to meet all requirements.
To conclude, let me add, doing business requires being truthful to what is and what isn't. I keep on saying, numbers don't lie. Business is also like a patient who needs a daily dose of peels to stay alive. This is not rocket science, it remains the basis for a sustainable and ever growing business. It is only a pity that very few understand this business ethics and in return keep running around circles. Busyness is here always mistaken for business. This is something I am currently working on, bringing in all needed incorporation to hit the least target that will thrust us as a brand into another dimension.
