Creative Reaction

This simple, thought-provoking post at Signal vs. Noise should resonate with those of us who own their own businesses. At issue: debt, profit and the freedom to succeed.

We are surrounded by companies whose focus seems to be survival/hunkering down/waiting for the economy to get better. And so they lower their prices “because they have to” thus commoditizing unique services. They advertise less or not at all.They look for ways to cut costs without realizing they are withdrawing from their clients.They fear entering new markets because that might anger their vendors.

It’s time to be blunt. That doesn’t work. Their businesses will fail, gradually or suddenly.

We need to price our services based on their value and in a way that pays the bills and allows for a profit. We need to study our markets and introduce products and services that meet current and future needs. We need to leverage technology to find new efficiencies, better serve our clients, and gain a competitive advantage.

Quoting the author,

“As long as you’re beholden to other people’s money, you’re ultimately beholden to their approval.”

“Once you start thinking about how your decisions and actions might displease the men with the money, you invariably shy away from the most controversial (and best) ideas.”

It’s been said that every new business represents an attempt by its founder to reorder and improve the world in some way. If your business does not generate a profit, you will not be able to fulfill your own vision. And that’s the biggest tragedy.

(Related posts: Clients or “Grinders”, Monetize Doing What You Love)

In The “Psychic Benefits” of Nonprofit Work Are Overrated, Dan Pallotta rails against the idea of working at a significant discount because it’s the “right thing to do”. I can’t remember the last time a business post made me smile so much.

He makes an excellent case that making a lot of money and donating it to a cause is far better for everyone than taking a small or huge pay cut and working for the cause.

Making a difference in this world is not defined along the lines of profitability or non-profitability. It is not an either/or choice; it is both/and.