A CFO’s Perspective on How Core Beliefs Affect Your Profitability
In a recent conversation with another business owner, we were discussing underlying beliefs that don’t let us grow towards a “New Normal” and ELEVATE our leadership… and one such belief that came out to the light was that- she felt unworthy and apologetic for earning more than her team members. She said: “I couldn’t do what I do without them,” which I totally get as a business owner myself with one of the most amazing and wicked smart teams on the planet.
However, when she said that, my CFO voice came on and I immediately asked her how was that showing up in her business’ profitability…and this is what she said:
“It’s interesting that you ask me that because my business has stagnated during the last 2-3 years and even though my revenue has increased my profits are in the low 6 digits… which is where I was when I first started my business. I like to pay my team well, they are one of the best paid in the industry and I make sure I keep them happy and with enough VA’s to help them…actually I know I might overpay them but they take care of so much stuff.”
It was interesting to see though how she knew rationally that as the entrepreneur she should be compensated for the risks she is taking but that this understanding was not translating to the existing reality of her business.
To illustrate this point, for example, when you are exchanging dollars for hours and you have the luxury of only being switched to ON from 8-5, and you find yourself not taking many risks…and there is nothing wrong with that…you operate in the EFFORTs economy and compensation in terms of Freedoms of Time, Money, Relationships and Purpose is quite limited.
We all know as entrepreneurs that we score and win the game when we have RESULTS, and we are willing to take huge risks, go through extended periods of uncertainty and discomfort and do what it takes to produce those RESULTS… hence we operate in the RESULTS economy and we are compensated with Freedom of Time, Money, Relationships and Purpose on a much larger scale…UNLESS…
—>In your business you are on the wrong bus, with the wrong team, in the wrong seats, climbing the wrong ladder without a foundation and focus on Your People and Corporate Identity, Your Strategy, Your Processes, Your Systems and Your Momentum.
In retrospect, I honor her for the courage to put awareness into her beliefs. The reminder for me was: How I LEAD my internal game, affects my external reality… in this particular case, profits…and I asked myself in which areas of my life and business am I abdicating leadership because my existing set of beliefs are not congruent with the “New Normal” of Contribution I want to create in my ONE BIG Full Life.
WE all hit ceilings or plateaus, but if you are looking to set a “New Normal” where are YOU currently abdicating Leadership due to Beliefs?
Are you ready to break from the pack and step into a “New Normal” and level of Leadership and Contribution? If you are this kind of business leader then click here to schedule a call with us!