[bctt tweet=”Passion doesn’t always lead to profitability. Find a careful balance. #MogulChixChat #WomenEntrepreneurs #FemaleFounders” username=”@talentdiva”]

 

Mogul Chix Tip: Focus on Profitability vs Passion.

Passion is good. You should be passionate about what you do. Without it, being in business would suck. I mean who wants to run a company day in and day out that makes them miserable? We get into business for ourselves to solve a problem and give ourselves the freedom to build the lives we want. For some, it’s just about the money. But for others, it’s about seeing something they’ve envisioned come to life and how it affects others.

Being wildly passionate about what you do is a great when you’d in business. But never forget that you’re in business to make money. And not just make money, but be profitable. More times than not following your passion can lead to slow growth and low revenue, a deadly combination that leads to being a Broke Brand. In the age of social entrepreneurship, the focus is more on helping people than solving problems. And in that broken thinking, the entrepreneur doesn’t carve out a path to profitability. Some entrepreneurs feel guilty for thinking about money. But like it or not, money is necessary to sustain a company. Even non-profits have to make money to stay in business. How else will the bills be paid?

Regardless of the type of entrepreneur you are, your eye should be on the bottom line. Your success and profitability depends on your product/service, positioning, competition, and other market factors that should not be ignored. As you grow, you’ll have more responsibilities on your plate, such as adding a team and incurring payroll expenses. You can’t expect people to work for free. You need a talented team to fulfill the services and/or develop the products that you sell to your customer base. Those of you in a product driven business have to consider the costs of production and logistics. With these factors in play, you must look seriously at how you price your products or services.

The growth and revenue potential between business-to-consumer (B2C) vs. business-to-business (B2B) companies can be vastly different. Both are great, viable paths to profitability. But, they can result in two completely different outcomes when it comes to revenue potential, cost per sale or the ability to scale quickly. And it’s your job to understand the difference and shift accordingly.

By now, passion has seemingly taken a back seat because of all of these other variables that most people don’t take into consideration when building a company based on a passion. There have to be efficiencies in place and a realistic command of the numbers. You can mix passion and profits, if you do it correctly. So don’t be discouraged. It will take a retraining of your mind and a disciplined approach to ensure neither is disrupted.

Want to learn more? Register for the Mogul Chix Mastery Class: The Money Talk.

 

Til next time,
Adrienne Graham
Founder, Mogul Chix, LLC

 

[bctt tweet=”Passion doesn’t always lead to profitability. Find a careful balance. #MogulChixChat #WomenEntrepreneurs #FemaleFounders” username=”@talentdiva”]
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Adrienne Graham is the Founder of Mogul Chix (www.mogulchix.com), a global company and community for female founders and women entrepreneurs. She works with female-founded companies to grow, scale & making them investment ready. She is CEO of Empower Me! Corporation (www.empowerme.org), a growth strategies consultancy for high growth companies. She provides Strategic Business Growth advisory services to companies with high growth potential to assist clients in creating processes and strategies to effectively scale, run, grow and position their business for success. Adrienne is an author, serial entrepreneur and avid techie dedicated to promoting inclusive diversity in the tech, VC and startup community. She is steadily building her empire one company at a time. She is also a Mentor for the Straight Shot Accelerator in Omaha, NE, which helps guide startups into successfully launched ventures.

 

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