Why Profit Isn’t Always The Bottom Line
In many people’s minds there is only one simple reason for any business to exist: to make money. In many ways this is true. No business, small or large, can exist very long without turning a profit and the principles of our capitalist society teach us – rightfully or wrongly – that the accumulation of great wealth is the mark of true success.
I propose that there is a deeper purpose: creating value.
In my time as an entrepreneur I’ve worked with dozens of small business owners. Most, as you might have guessed, were driven by that rallying call for more “profit, profit, profit!”. But I’ve also had a lot of clients who I wished were making more money, but were quite happy with exactly the size and profitability of their businesses as they were.
These business owners taught me that currency comes in different forms. Cash is one form, but sometimes it’s about the values of the business owner and what drives them.
Think about yourself for a moment. Why did you decide to start your own business? Maybe you’re an artist who wants to share your craft with the world. Maybe you have a desire to change society for the better. Or maybe you have some other dream that goes beyond money.
These are all elements of currency that your company can create. But like any currency, you need to account for it. You need to manage it like money, you need to measure it, you need to plan how you’re going to deliver it and then assess your progress along the way.
This is where Blue Sky comes in.
Yes we’ll help you make sure your books are balanced and the numbers are put in the right boxes on your tax return. But more importantly we’ll help you spec out what you want to accomplish in whatever currency that is, be it financial or otherwise. We’ll help you define your goals, set the metrics, and develop an action plan to steer you towards success.
Because at the end of the day what accounting is really about is staying accountable to your goals and the value you want your business to deliver. Profit isn’t always the bottom line.