High Profit Small Business: A Watchful Eye Is Needed.

High profits and low costs or expenses, are a married concept. One enables the other, with a twist that is. Continuing to operate a low cost high profit small business absolutely requires one thing. This one thing will be imperative for your ongoing success in achieving this worthwhile objective.

The Key: Continue to choose a low cost high profit business. Simple Right? Not so much, I would challenge.

You see many times when starting out a small business or home business venture we go through this focused planning phase. This hyper focused planning phase is driven by crystal clear motivators. Things like getting the hell out of a job or position you despise, getting rid of some student loan debt, or paying of a mortgage. We all have our motivators.

The problem arises when we have been operating our New Low Cost Business, Our Freedom Creating Machine that lines our pockets and our lives with the liberties we once only imagined, for a while. Lets say we now are earning a few thousand dollars a month, and some of those original motivators have subsided.

Many of us will start to "outsource" the annoying tasks and maybe spice the image up a bit. Maybe we decide it would be a good idea to begin a multi national branding strategy, or something stupid like that. (I say stupid only in the context of this article) The point is this. Making the decision to begin a high profit simple business from home is just that. A simple high profit business. One created with the core concept of keeping costs low.

What can happen with the emergence of a few results is absolutely astonishing.... Mr. or Mrs. ego can hop in as the new CEO and start making those chest thumping, vision filled decisions that, along with whatever the actually accomplish, Deplete Profits.

Here are a few key points to stick to your guns on a low cost high profit business stand you are making:

Break costs and expenses down to percentages of sales

Break profitability in to percentage of sales. ( use quick books or something like that, its cheap)

If three months down the road you notice the % of profitability drop find out why.

Pick a month of acceptable results (in %of profitability) regardless of revenue and compare current results with that month. Do this Every month.

Stick to an advertising budget. Period. Once your rolling its going to be a percentage of sales revenue. As the revenues increase so does the percentage of advertising. ( For Growth)

Keep in mind the lowest cost customers are the ones you already have. Create new products of services. The 2ND tier products should have little to no marketing or advertising expense.(Yippy)

Another Point, a tricky one I think, especially if your like most Americans, you gotta be OK with money piling up in the bank. Most of us are not. Find things to do with the money you make that continues to maximize the profitability of acquiring and serving your customers.