We’ve covered before what a priority-run business is. But what’s the difference between a profit-run business and a priority-run business? This is a core question business owners should be asking themselves.
A profit-run business is based on the discussion of profit alone. Now, understanding your numbers as a business owner is super important. But if the desire to make more profit is the only reason you’re making a specific decision in your business, there can be a lot of problems that come up from that.
So what I encourage most business owners to do is to transform their profit-run business into a priority-run business.
A priority-run business is one in which the owner/the CEO/the person making the decisions leads the company based off a deep knowledge of the company priorities. That means that then, as a business owner, they can strategically move with the knowledge that these decisions are in alignment and intentional in terms of business growth.
For example, I recently worked with a yoga studio. One of their priorities was not only growth but that specific clients would be able to learn about themselves and their bodies. Plus, transform from a place of being injured to a place of, not only strength, but new alignment. This was really important to the yoga studio.
However, prior to that they were running a lot of specials because they thought that would bring in more profit. But what ended up happening was they were getting a lot of clients that didn’t meet their number one priority, which was reparative work.
So what we did to align their business more with their priorities was to stop running their specials. And the reason we did this was not that specials are bad. Obviously sales and specials are enticing and using that strategically in your business doesn’t mean you aren’t in line with your priorities. But I got to slow down and asked, ‘is this bringing in the type of clientele that’s helpful for them’?
For that yoga studio, what they noticed when they stopped offering those was even though there was an initial drop in profit. However, over time there ended up being an increase in profit because they got in alignment with their priorities.
Priority-Run vs. Profit-Run
There’s something else I’ve noticed happen time and time again with priority-run businesses that doesn’t happen in profit-run businesses. The communication between the owner or management and staff has increased and that has allowed for profit to increase. Because the communication between the owner and the team or the employees has to come out of this place of communicating what’s important. And if profit alone is important what ends up happening is that sales, but not effective sales, become the driving force.
So right now I want you to pause and ask yourself, do you have a profit-run business that is possibly wearing you out, wearing your employees out and has stalled out? Your profit was good for a while but now it’s stagnant.
Or, do you have a priority-driven business? If so, you should be able to get on a call with me and say, “Naphtali, this is what my business prioritizes and this is how we act in alignment with that”. I would love to get on a call with you and just chat about if you’re either and how those are working with you.