Net Profit In Terms Of Time

Gross sales are an extremely important part of our business, but they are not the end all. Many companies break sales or revenue records but see decline in their net profits. I believe that net profit is a critical aspect of our business that may need some investigation. 

Let’s make it personal and look at what we do everyday with our own assets in our quest to create a meaningful income, while striving to build a practice that will stand the test of time. First, we must examine the assets that are available to us. Unless things have changed, I view them as:

1. Time and Man Power
2. Money

Time is very finite. We can’t buy more time. So what might the answer be? Delegation is the answer. Utilize or hire staff that can perform tasks that would free you up to continue marketing and selling. 

Prioritizing is also an important part of time management. I continue to complete a “to do” list for my next day’s activities. I prioritize them and start crossing off the next morning. Rarely do I complete all of my tasks on that day, so there is always a bit of carryover, where I strive to take care of those items immediately. Microsoft and other software programs can assist you with reminders and deadlines, although I still believe that tasks seem to take on greater meaning when I am writing on pen and paper.

It’s also important to know your market. When can prospects be contacted, when can clients be seen and when is a good time to communicate via mail. These are the times when you create revenue. Don’t use revenue time to perform administrative duties. I must repeat . . . use your calling and contact times when they are optimal.

What about personal and professional time? Make sure you schedule vacations, time for study, and time for meetings. The interaction with people and resources will prove stimulating and profitable. Time away from the office allows you to step back and analyze what you are doing. Plus, a good personal life with family is a by-product and benefit of our profession. Don’t waste it!

These are but a few items to consider when evaluating time management. Entire books have been dedicated to this subject. It is one of the most important factors that has a direct influence on your net profit, or lack thereof. 

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Until next time… good selling!
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Raymond J. Ohlson
Founder & Retired CEO
Ohlson Group
​1-877-844-0900