7 Habits of Highly Profitable Entrepreneurs
When I was a freshman in high school, my first assignment was to read a book by Stephen Covey. The book was, “The 7 Habits of Highly Successful Students.” It was a play on his NYT best-seller, “The 7 Habits of Highly Effective People.”
I was in a magnet school at the time. None of my classmates or I would have been there if we weren't already "highly successful students." So I rolled my eyes and opened the book.
Over the years, I've seen this book pop up from time to time. Dozens of versions of it exist now for all sorts of roles and professions. I still think it's cheesy, but I now understand the appeal.
Why? Because it touches on best practices. And there are best practices for every endeavor out there. These lists of 7 habits are like growth hacks.
In my work with dozens of entrepreneurs, I’ve seen many successes and failures. Here is my take on the 7 habits of happy & profitable entrepreneurs.
1. They leverage tech
Thank you, Tech Gods! Running a profitable business requires less manpower than ever before. With the right tools, you can do more, faster, and with less manpower.
What you used to have to hire a person to do, like call customers to chase payments, is no longer a worthy use of resources. Instead, you can set up automatic invoice reminders to send after a certain number of days.
The biggest expense for most businesses is labor. Tech can help you automate many little, necessary tasks. This grows the bottom line because tech is way less expensive than labor.
There are hundreds of apps available today. Put in place as many as you can to automate different parts of your business. Some apps can do low-value tasks, like moving data from an email to a Google Sheet. Others create powerful automation, like sending new subscribers a series of welcome emails.
Even a small company can make a big impact today. With tech, you can make a profit too. Check out some of my favorite apps here.
2. They are in touch with their customers
Shay Cochrane, the owner of Social Squares, says, “the best ideas come from your customers.” Your customers will tell you what they like and want more of. It’s your job to listen and respond.
Profitable entrepreneurs stay in touch with their customers by asking for feedback. They don’t assume they know what their customers want. They ask. Then they tweak their offering based upon what they learned.
Your customer also speaks with their money. Stay in tune with sales results and trends. You can use that information to ask better questions and improve upon your products.
This is not a novel step, but like many things, this knowledge is worthless without action. Profitable entrepreneurs are proactive about uncovering their customers' desires.
3. They hire for their weaknesses
What tasks are you not great at? It could be hiring, coding, taxes, or a million other skills you need to run a business.
You shouldn’t be doing those. None of them.
Instead, you should hire someone who can do the job better than you. Profitable entrepreneurs know to focus on what they do best. They don't try to do it all alone.
Their time is valuable, and they know what it will cost to learn and DIY something. So they don't. They invest in a team of experts who can provide better results.
By focusing on their skills, profitable entrepreneurs are free to grow their business. They can do the work that leads to revenue.
Make the choice to use your strengths and hire for your weaknesses. You’ll do better work, feel happier while you're doing it, and make more money.
4. They are consistent
Happy and profitable entrepreneurs are true professionals. They show up and do the work day after day. They make big promises to their customers and deliver a quality product.
You can’t do that if you’re changing products, strategies, or marketing messages all the time. Your business needs stability before it can gain traction.
You need to be consistent and deliver on your promise. Only then can you nurture high-value customers and build systems to create efficiencies.
Every day, your job is to plant a seed. After planting many, many seeds and nurturing the soil, you’ll see the sprouts of growth. And in time, the fruit of your labor.
5. They know their numbers.
Truth bomb: If you want to know if you're profitable, you have to know your numbers.
Profitable entrepreneurs keep a close eye on their finances. Their books are up to date, they know their margins, and they work on what drives revenue.
They see business as a numbers game. They know if they can do more of X, they’ll improve the financial results. They know what drives the results they seek.
How do they know? Because they know their numbers. They've made forecasts, tracked progress, and reviewed the results, over and over again. They see their numbers as a tool. If their business steers off course, they can diagnose where and get back on course.
Successful entrepreneurs know they are building profitable, resilient businesses. They've got the Balance Sheet to prove it!
6. They have a growth mindset
Successful entrepreneurs, even seasoned ones, are always learning. They are hungry for knowledge because the world is always changing. To keep with the game, they must stay curious. They have what is known as a growth mindset.
They work with a mentor, coach, and other business owners. Advisors shine a light into your business. They can pinpoint blind spots, opportunities, and sticky situations. You can grow so much faster when you are willing to learn from others.
In business, as in life, there is always more to learn. Crack open a business book, look for a mastermind, or take an e-course. You can learn new skills. You can strengthen a skill. You can become even better than you are right now. (But, for the record, I think you're pretty awesome as you are ;) ).
7. They have a vision and goals
Vision and goals are not one and the same. Profitable entrepreneurs know this and have both mapped out. A vision is akin to a long-term guiding principle. Goals are the milestones necessary to achieve the vision.
Goals help you set your day-to-day priorities and actions. They give you focus and purpose behind everything you do. You know how a task serves your goal. You know how a goal serves your vision. You can vividly see where you want to be in three years, five years, ten years' time.
Even better are stretch goals, because they push your limits and comfort zone. Set short-term stretch goals and recalibrate often.
It’s imperative to stay flexible in the short term. How you manifest your goals will look different than expected. Stay true to your long-term vision.
Happy & profitable entrepreneurs know they'll get there. I'm sure you'll be among their ranks too.
The 7 habits may seem obvious (don’t you roll your eyes now! ;) ), but their impact is profound.
Creating a profitable company is not easy, but the formula for success is not a hidden secret. It takes diligent work over a long period of time.
Knowing these seven habits is not enough. You must put them to use. You already have all seven in varying degrees. Pick one or two you’d like to strengthen, and focus on it for the next 90 days.
Success doesn’t happen by accident. It’s built upon great habits. Practice these 7 and you’ll be on your way to building a profitable company.