Have you been noticing how difficult it is to be profitable as your business grows? If you’re like me, when you started out in business, you probably thought that “one day” you’ll actually make more than you spend—that you’ll actually be profitable.
Yet, for some reason, that day never comes. Your business grows, but so do expenses. You keep getting by paycheck to paycheck.
This is actually very common in businesses below $5 million in revenue. In fact, business owners in this range are very vulnerable to being sucked into the ‘Profit Black Hole’ where no matter how much revenue increases, costs increase even more. Why is this?
Typically payroll is your largest expense. Most small businesses have employees on the payroll who, for one reason or another, are just not productive enough to make your business profitable.
It all goes back to your hiring process.
Most small business owners follow traditional hiring practices.
You might be surprised to learn that traditional hiring practices set us up to mis-hire 75% of the time. That means that most likely, if you have 4 employees, 3 of those employees are not a good fit and not productive enough for you to be profitable.
If you continue to use traditional hiring practices as your business grows, the cost of mis-hiring grows exponentially with each new employee you add to your payroll. So, here you are, adding new employees to the payroll to keep up with the growing demand for your product or service. Yet, if you are mis-hiring, you end up with a lot more ‘employee’ headaches, and a payroll that is an expense, rather than an investment.
I’ve been studying employee productivity in small business for years now and I’ve noticed there is one area in your business that when you improve it…can have a significant impact not just on your profit, but also on YOUR enjoyment and satisfaction in being a small business owner.
What is it?
Learning how to attract and hire top performing employees.
It’s actually a simple skillset, yet so many business owners struggle here. That’s why I’m excited to be offering my new MASTERCLASS:
There are still some seats left.
Click here to claim yours now!
I hope you’ll be joining us!
Dr. Sabrina Starling, The Business Psychologist™ and author of How to Hire the Best specializes in transforming time-, energy- and cash-sucking small businesses into highly profitable, Great Places to Work!
Employee problems can be one of the biggest stumbling blocks for any business owner. With her background in psychology, and years of coaching small business owners to extraordinary results, Dr. Starling knows what it takes to find, keep and get exceptional performance out of your biggest investment-your employees. Access her comprehensive video training 5 Secrets to Exceptional Employee Performance (her gift to you!) at www.tapthepotential.com
WANT TO REPRINT THIS ARTICLE IN YOUR EZINE, BLOG OR WEBSITE? You’re welcome to, just please include the authors’ bio with the reprint.