Don't confuse activity with profit
I have two friends who both run primarily online businesses. On does about $12 million a year, the other does about $5 million a year. One has sixty employees, offices, computers, managers, and looks like a "real business." There's always lots of "activity" happening, and as you might imagine, he's the $12 million a year guy.
My other friend runs his business out of his house, has no full time employees, and four part time ones. He has no offices, no phone system, and one or two computers. That's it. The "activity" is a minimum and he likes it that way. He's the $5 million a year guy.
Who do you think puts more money in his pocket and has less aggravation at the end of the day? The $5 million a year guy, by far.
Business owners tend to make the mistake of wanting to appear like a "real business" as fast as possible, not recognizing that "real businesses" and the "activity" they produce sucks cash out of the owner's pocket at an amazing rate. The business owner is actually indulging himself in "activity" not realizing the high cost he's paying.
Obviously it's an individual choice--some owners get emotional gratification from activity, and that's OK. But many more get bogged down by it, not realizing that "activity" and profit often have an inverse relationship.
It's your choice, but I'll take profit over activity any day of the week.
Let's get to it...
Mr. X.
Group M Marketing
Kimble and Kennedy Publishing
My other friend runs his business out of his house, has no full time employees, and four part time ones. He has no offices, no phone system, and one or two computers. That's it. The "activity" is a minimum and he likes it that way. He's the $5 million a year guy.
Who do you think puts more money in his pocket and has less aggravation at the end of the day? The $5 million a year guy, by far.
Business owners tend to make the mistake of wanting to appear like a "real business" as fast as possible, not recognizing that "real businesses" and the "activity" they produce sucks cash out of the owner's pocket at an amazing rate. The business owner is actually indulging himself in "activity" not realizing the high cost he's paying.
Obviously it's an individual choice--some owners get emotional gratification from activity, and that's OK. But many more get bogged down by it, not realizing that "activity" and profit often have an inverse relationship.
It's your choice, but I'll take profit over activity any day of the week.
Let's get to it...
Mr. X.
Group M Marketing
Kimble and Kennedy Publishing
