Profit Secrets: How to do a money diet
Diets are *just* like accounting. And no, it’s not because everyone hates them both. Honest.
Why diets work
You ever notice how you can go on a diet and lose weight? But then, the minute you are not paying attention you put fat back on again? Just me? I think not.
By the way, by “diet” what I generally mean is: planning your food, weighing, measuring and tracking your food intake and then “miraculously” losing weight on the scales*.
BUT IT ISN’T MAGIC! It’s method.
It turns out the actual ‘diet’ is kind of irrelevant, it’s the process of setting targets, becoming aware of what you’re eating, and tracking to ensure you stay on track is what makes the difference! I know. Mind. Blown.
You see, what you pay attention to matters.
Cue cheesy quote:
“Where focus goes, energy flows”
Or something like that.
So if you are not paying attention to your business money (the finances) then you are not paying attention to your profit. By not keeping track of your business transactions, you cannot be sure whether or not you are even making money (profit! to be precise), or if you are, how much you are making (is it enough?). That is freaking scary.
A step by step plan for success
So how does a successful diet work? I can tell you - I’ve done it.
Get a trainer / coach (hey Aadam!)
Set a calorie and macro target appropriate to your current position and goals with their guidance (I’m only 5’4” so less calories than my friend who is 5’7” sadly)
Plan your food and exercise within a realistic, achievable framework
Follow the plan
Track your progress on the plan
Repeat steps 2-5 as required until you meet your goal
Hello muscles :)
Easy huh? Oh no, sorry. It’s not muscles you’re after. It’s money. Same same.
The Money Diet
A step by step plan for profit
Get a ‘financial trainer’ - ideally an expert in business finances (could be the internet, but an actual person expert makes this step shorter and more efficient)
You set a money target - this does require you to know where you are at the moment in terms of income and expenses, so you may need to do a business finance audit if you aren’t on top of things yet
Make a money plan within a realistic and achievable framework
Follow the plan
Repeat steps 2 - 5 until you meet your goal
So if you want your business to be successful, i.e. profitable, you need a plan.
You need to know what is coming in (income) and what is going out (expenses), and WHERE it is going.
And you need to measure your progress.
This means you need to WRITE THINGS DOWN. OK, well not physically write, but you need to track. Paper, spreadsheet, accounting software. For now it doesn’t matter. But you cannot check whether you are doing what you planned unless you write it down somewhere.
Why record your expenses?
It is the act of making things conscious - bringing them into your attention - that makes the difference. You never think you’re eating *that much*. In the same way you don’t realise you’re spending *that much*. Until you start writing it down.
All those little expenses that creep in and add up that are not counted are most likely a key reason you’re selling things but don’t seem to actually have any money.
Once you know what you are currently doing, you can take the next step and make a realistic plan for profit!
Which step do you think is the hardest to do? Let me know!
*If you honestly think diets don’t work then send me a message and I’ll send you the secret recipe to… joke! Check out this guy: Aadam Ali and Physiqonomics. Personally I’ve sorted my life out and lost over 50lbs of fat, gained muscle, and kept it off, with his expertise.
Spoiler: It involves tracking.