P is for Profit

Do you want to sell your business someday? Or, pass it on to the next generation? Do you fear it might just shut down when you leave? If you’re already profitable and thriving, you’re moving in the right direction. But it might surprise you to learn that it’s not enough. As business coach and consultant Christian Muntean says, “A profitable business isn’t necessarily attractive to a potential investor.”

Common wisdom in the eCommerce world is that if you want to increase your revenues, you need to “buy” more traffic with paid advertising. The thing is, that while that may have worked during the startup phase of the business, it becomes less and less effective with an established business… not to mention more and more expensive, which cuts into your profits.

Just because you’re good at your craft or profession doesn’t mean you can run a successful business. In fact, too many small businesses are forced to shut down, notes author and business consultant, Fred Parrish. Why? Because the owners didn’t understand the financial side of the business, even if they provided great service and had plenty of satisfied customers… not to mention plenty of cash coming in the door.

Many eCommerce entrepreneurs focus mostly on revenue and profit – and cash flow – to gauge the health of their business. Branden Moskwa says that’s just fine… but only the first step. You must also use those numbers to guide your decisions to create even more profitability in the future. One of the ways Branden implements changes that will foster success is by throwing out templates and embracing a customized eCommerce site.

On the surface, referral marketing is pretty simple. You simply have your customers or others– known as affiliates– promote your products and when they make a sale, they get a commission. It’s a great way to add some extra cash in your pocket without extra effort.

You can fly by the seat of your pants with your business for awhile. But soon it’s time to grow up, says retail strategist Salena Knight, or you risk stalled growth, unhappy employees, stress and overwork. She’s a big fan of systems and processes, either automating certain tasks or making them very easy for someone to do. That productivity means making more money while working less.

Despite what the pundits might say, email marketing is still very much a force to be reckoned. For most companies, says Austin Brawner, it’s still the #1 or #2 marketing channel. But that doesn’t mean you can simply build a list and start sending messages. As the CEO of Brand Growth Experts, Austin has seen first-hand that email campaigns today must be super-targeted and strategically thought out to have an impact.

You’ve gone from startup to six or seven figures. Your business is healthy and growing. You’re ready to sell. What next? Just like selling a house, you can’t simply throw up a “For Sale” sign. You have to stage the house for showing, the financials should be in order, and you have to ensure that prospective buyers see value.

People come to your ecommerce website… but they don’t buy. Do you know why? Do you know where along the sales process they fell off? That’s the type of data Jon MacDonald, founder of The Good, tracks as he helps his clients boost their conversion rate, i.e. the percentage of website visitors that actually buy. But too many entrepreneurs are focusing on the wrong metrics and don’t understand how to turn the data into effective action.

Are you so caught up in the day to day of your business that you don’t have time to look closely at your marketing strategy? Could key changes boost conversions… increase traffic…grow sales… exponentially? Get out of the weeds, says Stephen Carl, founder of digital strategy firm Needle Movement. It’s time to take the time to examine your marketing strategy, especially the digital marketing strategy which faces the challenge of ever-changing channels and best practices.

You start a business. You work your butt off, alone, to grow and get profitable. But at some point, says Nathan Hirsch, founder of Freeeup.com, you have to make that first hire. And that, says Nathan, is where many entrepreneurs go wrong. Instead of freeing up their time, they’re busier than ever working in their business instead of on it.

Building an eCommerc business can be complex, especially with all the fancy marketing strategies out there. But if you don’t have a solid basic foundation, you’ll never really realize the full potential of your business, says Bart Mroz of eCommerce consulting firm SUMO Heavy. What does Bart look at first when working with a business?

Too many ecommerce businesses depend on one marketing channel for a majority of their traffic… and the resulting sales and revenue. That, says Dylan Kelley, founder of Wavebreak.co, is a recipe for disaster. Dylan specializes in helping entrepreneurs get more sales from the traffic they already have – and not spend more money on expensive ads to get new leads.

Scott Scharf, of eCommerce-focused bookkeeping service Catching Clouds, has seen too many entrepreneurs with no idea how to track the success or impending failure of their business. It’s all about monitoring the right metrics and numbers – and then being able to figure out when and how to take action.

Amazon is a great platform for your eCommerce business, says Dillon Carter of Vendrive. But it’s definitely not without its pitfalls. Dillon shares many of the unexpected – but all too real – obstacles to successful selling on Amazon… and how to overcome them. He says with the right data, a focused mindset, and some basic business knowledge, anybody can easily scale up their Amazon selling.

As an ecommerce business owner, you know the vital role SEO plays in bringing prospective customers to your site. But, says Megan Clarke, too many entrepreneurs find it intimidating… or are misinformed about what an effective strategy looks like. They might spend a lot of money on SEO help… without much to show for it. But, with 270,000 ecommerce sites in the U.S. alone, you can’t ignore this essential element of your marketing.

Have you ever felt overwhelmed by the financials of your business… confused about cashflow… upset that the venture that was supposed to give you more time has you working more than ever? Adam Lean’s mission is to help small business owners maximize profit and personal freedom. And to get the word out beyond his clients, he’s started the P is for Profit podcast.