You work long hours in your business to create a desired product or service to generate positive cash flow, but you may be more focused on product creation instead of the business activities that are required to increase profitability. As a Professional, you must also approach what you do every day as a business that requires time to make decisions, analyze costs, collect payments due to you and pay your bills on time.
Spending time building your business can provide great return on your investment. You should be analyzing your finances and mapping out a strategy. By committing to the time to think through what you want to achieve, you can begin to realize your goals and vision. You can begin to shape your future by writing a plan and analyzing your monthly results.
I married into a family of Creative Professionals and Entrepreneurs. My wife’s parents have been in music production and performance for over 50 years. Her siblings include an independent filmmaker (and his wife and children also are Entrepreneurs), a published author and a recording artist/music producer. For over 20 years, I have been able to watch and learn how Creative Professionals approach their business planning, and how they create success and overcome challenges in executing their daily business activities.
My daughter recently graduated with a degree in Studio and Digital Arts and has been an Entrepreneur for the last few years selling her art online. I have been fortunate to be one of her advisors as she grows her business while she also matures as a professional artist.
“Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” –Paul J. Meyer, author and personal development expert
How to approach your profession as a business:
- Establish systems and processes. Systems allow you to more easily manage routine tasks and to gain efficiencies. Develop simple processes to manage your business. For example, you have to file federal income tax forms every year. Develop a system (preferably a web-based tool) to track and organize your expenses and revenues which can generate your tax forms without scrambling in stress every April.
- Maximize technology. Use on-line tools and applications to manage your business. Record your expenses and invoice your clients using professional services so you can track and analyze your money. By electronically invoicing, you can know when a client opens the email eliminating guessing.
- Manage your time and access. Schedule your revenue generation time along with business activities. If you are a Creative Professional such as an artist, block out time on your calendar when you are at your most creative and productive. Also, schedule business time to review your financials and update your strategy. Protect your time from distractions to provide critical time for building your business.
- Invest in yourself and your business. Ensure you are developing your skills and planning for investments in your business. If your business is capital intensive with expensive equipment and software, you must develop a long term acquisition plan. You don’t always have to buy the “shiny” object, but you must have a written plan to buy the equipment needed to grow. Always keep in mind the cost and how quickly you can get a positive return on your investment. If you spend $1,000 on equipment, how quickly can you recover that $1,000? Can you charge more for your services because you have the equipment or can you create a new revenue stream?
- Develop a well-crafted, written strategy identifying your competitive advantage. Think out where you want to be in the next 3-5 years. What level in your Profession do you want to be? Are you comfortable living a simplistic lifestyle or do you want a 15,000 square foot lavish home? What type of client do you want to serve, and where do you find them? Who is your competitor? What advantage do you have in the market?
- Possess the mindset of a Professional business person. You need to balance your time with revenue generation versus your necessary business activities. This is especially important if you are a solopreneur and everything is on your shoulders. Balance your time. Hire someone if that fits your business model. The best scenario is to hire someone who can be an additional revenue generator so you can build your business.
Your mindset must be to view your Profession as a business which can boost the possibility of greater profitability. Established systems and processes along with maximizing technology can make building your business much easier. Strive to focus on improving your strategy and finding insights in your finances.
How are you going to approach your Profession as a business?
Please comment or email me at comment@stephenmclain.com.
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Copyright 2017 – Stephen McLain