84: The Importance of Creating a Sustainable Business

<p>Natural selection: What does this mean for us as entrepreneurs? Many businesses are in a constant state of survival, and that’s never been more apparent than observing the current impact of the coronavirus and its impact on business.</p> <p>Some businesses will not make it through this time; some will come out battered and bruised—but stronger; and some will come out absolutely thriving.</p> <p>On today’s show, Dr. Sabrina and Mike explore the importance of creating a sustainable business from Day One. They discuss what we can do to get our businesses through this time and come out stronger. Listen in for some strategies that can help you weather this (and any) storm.</p> <p>Profit by Design is a Tap the Potential production in collaboration with Small Business Consulting Group.</p> <p><strong>Show Highlights:</strong></p> <ul> <li>Mike shares the definition of “natural selection” and applies it to the business world.</li> <li>Dr. Sabrina shares acceptable modes of competition, the danger of competing on price, and the importance of building margins into pricing.</li> <li>Traditional thinking advised setting aside three months of cash reserves, but current thinking is that six months is probably safer.</li> <li>You should be able to answer “YES” to each of these questions: <ul> <li>Are you bringing in work from your top clients?</li> <li>Are you doing work that aligns with your strengths?</li> <li>Is it work that can be systematized?<span class= "Apple-converted-space"> </span></li> <li>Does this work align with your immutable laws?</li> <li>Does it move you closer to your vision?</li> </ul> </li> <li>Some businesses are going through a “creative destruction” right now, letting go of team members that are not a good fit, creating a culture that they want to implement going forward, etc.</li> <li>Dr. Sabrina explains the 80/20 principle, which involves focusing on increasing business from our top 20 percent of our clients that are responsible for 80 percent of the revenue in the business, and the financial impa