Hands-Off CEO Podcast

how much profit should I be making - E95

How Much Profit Should I Be Making? – E95

Growth as a CEO often looks like more stress, more responsibility, too much work, and not enough profit. Even if making good money, many businesses are slowed by how little profits they retain. Real profitability is what a CEO would actually make if they were paid at market rate instead of their own salary. But how do you measure that? I’m sharing how to calculate your business’ real profits in this solo episode of Hands-Off CEO.

 

Key Ideas:

  1. It is common for CEOs of consultancy firms to rake in loads of money without retaining much profit, which ultimately diminishes over time. Their accounting may even be wrong. I discuss why this happens. “If you don’t know [how much profit you’re actually bringing into your business]… you don’t have an accurate benchmark to start [growing your company from],” she adds. [1:01]
  2. When calculating your profit, start with your gross sales. [2:08]
  3. The market rate of a CEO who is able to generate millions of dollars of growth in their company is much more than $100,000 a year. [2:55]
  4. Having low profits as a CEO does not mean that you’re not making good money or that your company isn’t good – it just means that there is a wide gap, and therefore an opportunity, to create a sustainable business that you’ll be able to run hands-off. [4:56]
  5. Before cutting down costs and generating more sales to increase profit, consider this: with your current offer, are you generating enough income from your existing clients and the news ones you’re onboarding to reach your goals? [5:44]
  6. Gross profit margin refers to how much each individual client project costs to deliver before your overhead. [7:56]
  7. The Hands-Off CEO team helps clients build an irresistible offer in four weeks. They have helped beauty and skincare brands generate $10 million of profitable growth using this process. [9:37]

 

KEY QUOTE

“[You double] gross profit margins by getting really clear and focused on what direction you want to grow your business in.”

 

Resources

Mandi Ellefson on LinkedIn | Twitter | Facebook

Hands-Off CEOExecutive Briefing

divider-wave-v

Let us help you Scale to Freedom

Build a team that runs the day-to-day without you, increase profits, and achieve $1M in revenue — and beyond. Apply for a complimentary Scalable Growth Diagnostic Session.
Mandi Ellefson

Mandi Ellefson

Mandi Ellefson helps service businesses with the tricky task of becoming scalable. Her passion is helping freedom seeking entrepreneurs scale the better way– for success in their business and in the rest of their life. Out of a decade+ experience and testing as a business manager, and then building and selling a design business, Mandi has created a system that is responsible for generating tens of thousands of dollars of new revenue for businesses she's worked with.

Posted in

Other articles you may like...

image_6487327
How to Escape the Consulting Agency Cesspool and Scale to $100k/mo in Profits…
3 Key Ingredients
3 Key Ingredients to Attract Higher Quality Clients Who Pay 50-200% Higher Fees
White For Men _ Masculine themes Twitter Post
[Case Studies] Command Higher Fees to Scale Your Consulting Agency (Without Working More, or Hiring a Massive Team)
blond-hair-desk-employee-1181534 1
She Found $84,000 of Extra Profit Hiding in Her Business