#161 The Surprising Way to Turn a Profit Every Year (even if your sales are slow)
There’s a difference between having a hobby and running a profitable jewelry business.
Here at Flourish & Thrive Academy, we give you the tools to figure out if you want a jewelry business – and how to build a profitable one if the answer is yes!
So today, I’m super pumped to announce our guest, Mike Michalowicz.
He’s the entrepreneur behind three multimillion dollar companies and is the author of Profits First, Surge, The Pumpkin Plan and what Business Week has deemed the entrepreneurs cult classic, The Toilet Paper Entrepreneur.
His next book, Clockwork, is being released in August of 2018. Mike is a former business columnist for The Wall Street Journal and a former business makeover specialist on MSNBC.
Today, Mike travels the world as entrepreneurial advocate and is globally recognized as the guy who challenges outdated business beliefs and teaches us what to do about it.
He’s here sharing how you can become profitable in your business before anything else!
This is super important because, if you’re anything like me, you’re wondering where all your cash went at the end of the month, quarter, and even year.Click here to download the show notes
5 Bank Accounts for a Profitable Business
Splitting up your business income into separate bank accounts guarantees that you’ll get paid each and every month. Mike suggests setting up five accounts within your business.
This includes an income account, profit account, owner’s compensation account, tax account, and operating expenses account. Split your money in this order, too! Set aside profits first, then if you don’t have enough money left to pay your bills, that’s your business telling you it’s time for something to change.
Premium Pricing for Profitability
When you charge a premium for your product, it’s a lot easier to become profitable. Increasing your margin is a lot easier than cutting your costs way down.
You’d be surprised how much you’re under serving yourself by competing on price. Mike talks about a jewelry designer in a book who actually sold out of her collection by doubling her prices – accidentally! Listen to get the full details, it’s crazy!
Don’t Be Limited by Your Industry
Let me be clear, it’s really important to get advice from jewelry designers who have build a profitable business. However, to keep things really fresh, ask yourself great questions that get your brain thinking outside the box!
Questions like, “what other industry is doing well that I can emulate?” The thing is, if you look for inspiration outside your industry – you can have a fresh offer in your market without having to come up with the idea yourself!
If you’re loving this type of conversation – you have to join us in NYC for Flourish & Thrive LIVE! Event! Our guest speakers are covering all areas of business and you’ll get a chance to look at things from a new perspective!
We only have a few tickets available! Click below to reserve your seat today!
Accounting for Jewelers is our lovely sponsor for this episode. If you have any tax or accounting questions for your business, ask them first!
Plus, you can enter the discount code “thrivebydesign” to get $100 off their DIY accounting made easy course, or any of the courses that Mariel and team Accounting for Jewelers offers!