Ron Collier’s new book, Profit Is an Attitude: The Strategies You Need to Optimize Profits, is a tour de force that every business owner should hear. In short, if you want to be in business, you have to want to make a profit. It might sound like common sense, but too often businesses fail because owners aren’t focused on increasing their profits or even following up on whether or not they are. As Collier states, most businesses are stuck behind a wall of growth and have to accept that they have to do the work to break that wall. Without making a profit, a business will rarely continue, so Collier, himself a successful entrepreneur and business management and sales consultant, wrote this book to show how to run a profitable business.
Collier’s experience and his storytelling style are refreshing. Having read many business books myself, I liked how he got right to the heart of his argument. Collier begins by pointing out that the business owner wears three hats: owner, manager and colleague, especially at the beginning. Unfortunately, the business cannot grow if the owner is too busy being the coworker or even the manager. A business is successful when the owner finds other colleagues and managers in the business so that the owner can focus on his role as an entrepreneur.
While business books typically emphasize how to get customers and sales, Collier points out that most businesses fail not because of a lack of customers or sales, but because of mismanagement. The owner must develop a “profit attitude” and get to work every day with the intention of making a profit if the business is to be successful. Unfortunately, many people do not have the spirit of profit or get too involved in the bottom of the business operations to focus on the main goal of making money. Collier shares several stories of business owners he has known or worked with throughout the book, many of whom are misguided in this way. For example, a business owner bragged about being so busy that he hadn’t had time to invoice his clients for three months. These business owners, as Collier notes, often end up going bankrupt. Instead, a business must constantly focus on making profits, and in order to do that, it must be well organized.
From there, the essence of Profit Is an Attitude is about how to organize yourself, both financially and in relation to employees and customers. While many business books cover the topics that Collier addresses, I have found the way he guides readers through understanding income statements and balance sheets to be practical and easy to follow, and unique in that. ‘he continually brought the discussion back to what is necessary. for a profit to be made. A key point of Collier is that there are only three ways a business can increase profits: increase sales, reduce costs, or increase prices. It discusses all of these options and how to determine which one is best in which situation; it also provides supporting mathematical examples; for example, he demonstrates how a slight increase in price will help profit increase more easily than an increase in sales. Ultimately, he argues that companies should strive to some extent to do these three activities on a regular basis.
Collier also discusses pricing, showing that increasing sales and being busy doesn’t always equate to profit. Instead, it depends on how you price your products or services. In fact, he says, “If you’re too busy, your price is too low. He explains how to figure out what a good price to charge, as well as how not to price based on the stories of business owners he has spoken to. A homeowner counted how many people lived in a house to determine what to charge for installing air conditioning, which was not a well thought out pricing plan. Ultimately, Collier explains why flat rate pricing, instead of billing by the hour, is very often the better choice; it makes customers happier because they know what to expect, and it generally makes businesses more profitable.
Each chapter begins with an inspirational quote. One of my favorites, by Robert Kiyosaki, was “It’s not how much money you make, but how much money you keep, how well it works for you, and for how many generations you keep it.” In addition, there is a glossary of terms, appendices that include sample balance sheets and income statements, and several references to various tools that you can find on Collier’s websites to help you start or reorganize your business. in order to make it profitable.
Most of all, I liked Collier’s main message that profit is attitude. It’s great to serve customers, but we can serve more customers, as well as our employees and ourselves, when our focus is on building a profitable business that will support us, our loved ones and those with whom we do business. long term business. Profit Is an Attitude may be the missing link that many companies are looking for. It is a book to read slowly and carefully, reread, and then apply for increased benefit and success.