Sergio had two daughters whom I thought were quite pretty when I was growing up.
His sons were not so good looking at all but were quite mischievous, and we got on well. Through them I got to know Sergio and his wife Clare.
Sergio left Scotland when he was a mere lad and went to work in the mines in Africa. As an engineer he eventually had the good fortune to move to Canada to work for a mine in Fraser Lake. When the mine closed and Sergio still had mouths to feed, his entrepreneurial spirit kicked in and he embarked on ventures that he thought would make him his fortune.
Sergio started a specialized sawmill that focused on selling to the export market. When that didn't work out, Sergio concentrated his efforts on silviculture contracts and traffic control where he could make money. When he moved from Fraser Lake, he opened a business that filled a niche market in the auto repair industry.
Like many successful small business owners, Sergio was always looking for profitable business opportunities.
Sergio had what I like to refer to as the key factor to business success, the profit mindset. Sergio had a commitment that allowed him to thrive in business when many others would have folded up and got a "real job." Perhaps there were times when his wife Clare would have preferred that!
That mindset is the determination of the business owner to get their operation profitable. While others chase sales growth or publicity, the successful business owner chases profit.
Not in the sense of chasing money, but in doing what it takes for the business to make cash. That starts with the determination to be successful and taking the steps necessary to ensure that success.
Those steps include:
Focusing on your customer.
Providing goods or services that your customers need and are willing to pay you for.
Differentiating yourself and your business, not by being the best but by being unique, as strategy guru Michael Porter likes to say.
Setting pricing and margins that work for your customers and work for you.
Thinking out of the box and being open to opportunities that are profitable.
Doing what it takes to get the business from just being borderline profitable to being really profitable.
Without commitment, marriages don't work. The same goes for business. Without commitment to profit, small business doesn't work.
Business owners need to be profitable so that they can hire more people. These people, when trained properly, allow the business owner to reduce their workload, get out of the weeds of the business and think more about the big picture.
A profitable business is less stressful because there is money to pay the suppliers, employees, the bank, and take home for your family.
When you have less stress in your business you are healthier. Your cortisol levels (stress response hormone) are lower and therefore your blood pressure and blood sugar levels are better.
Because you are sleeping well, your moods are improved, you don't crave as much sugar and salt and you lose weight easier.
When you feel better about yourself, and are happier, you have more energy to put into relationships and your community.
As you can see, this commitment to a profitable business goes a long way making the world a better place.
Don't get me wrong, more money won't solve all your problems, but when your business is healthier you will be too. It starts with commitment from you to doing what you need to do to ensure your business is profitable.
Sergio had that commitment to making his businesses profitable. Have you made that commitment yet?
Dave Fuller, MBA is a certified professional business coach and the author of Profit Yourself Healthy. He can be reached at 250-617-7467 or [email protected]
