Tag / profit

by Nathan Coumbe

What IS a Business—Really?

Here’s a simple definition from Donald Miller to help you understand what a business really is:

A business is a for-profit entity that solves problems for paying customers.

Let’s break this down:

For-Profit Entity

Without profit, a business can’t survive. Yet we’ve tied some evil stigma to the idea of a business making a profit. If they don’t make a profit, they can’t do the thing for which they are created. And what’s that?

They Solve Problems

THIS is the purpose of a business: to solve problems for people. And is that really such a bad thing? Wouldn’t you be happy to pay someone to solve one (or several) of your problems? Of course you would.

Now, there are numerous businesses out there that don’t solve problems for their customers, yet they still make a profit. Those exist only to get as much money from people as possible without providing any real value. That’s theft, and it’s both unethical and immoral.

The good news is those businesses tend not to last very long. How often did you do business with a company that gave you no return on your investment?

PAYING Customers

Paying customers… This is the hard part for a lot of us. We’d all love to be non-profits, helping as many people we can without them paying us a dime. But you can’t fill someone else’s cup if yours is empty.

Customers need to pay for what you’re offering them. Here’s why:

  • It lets you help more people because you have money to grow.
  • It incentivizes the customer to use what they paid for.

That last point is important. When someone pays for something, they are more likely to follow through with it. Whether you offer education, a service, or sell a product, the thinking goes, “I paid for this, so I might as well get my money’s worth.”

This simple definition of business has a lot of meat in it. It definitely helped me overcome my own issues with making money, because in the end we’re helping people.

We’re just doing it in a way that lets us keep the lights on. And lets us grow so we can help even more people.

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by Nathan Coumbe

If you build it, they (probably) won’t come.

The key in any endeavor from which you hope to profit, whether it’s creating a new product, learning a new skill, or starting a new service, is to first identify whether other people want what you are selling.

Contrary to the message in “Field of Dreams” (sorry, Kevin Costner), if you build or create something without first determining whether or not people want it, you probably won’t have anyone knocking down your door to get it.

Learning to be the best Fortran coding expert in the world is useless in today’s workplace because no one uses that coding language anymore. And don’t get upset if you spend 4 years learning puppetry only to find no one wants to pay you for it.

To make a living, you must serve other people. To serve other other people, you must find what people need.

You must determine what problems other people have and how you can solve them. Perhaps the need is to be entertained (in which case learning puppetry might actually be profitable for you, if you can find a way to market it). Perhaps the problem is a lack of clean water to drink.

Regardless of what you do, the key is to first identify what others want, then create something that serves that purpose. The customer must come first if you desire to profit.

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by Nathan Coumbe

Talk isn’t just cheap–it’s poor.

Proverbs 14:23 is one of my favorite verses in the Bible:

“Work brings profit,

but mere talk brings poverty.”

–Proverbs 14:23

Talking about your ideas – the job you want, the business you feel like starting, the person you are thinking of asking out – does absolutely nothing for you.

Action – taking steps towards a goal – is the only thing that brings reward. Waiting for some outside force – a company to find and employ you or a government to protect you – won’t get you anywhere.

Mere talk is impoverishing.

Work and take action today.

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by Nathan Coumbe

Profit vs. service

You have a really good idea, an idea that people will love, that will make a difference, that will make things better. In fact, the little voice in your head continues to tell you, “This might work.” But you continue to hesitate; you still haven’t shipped. Why not?

Money.

It always come back to money…but I don’t mean money in the way you’re thinking.

You might be a freelancer, a musician, a writer, or a budding entrepreneur: you want to improve the world, and you need to eat. Essentially, you are wrestling with two competing ideas: “Will this make me money?” vs. “Will this help people?”

If you live and work by the former question, you will make very little progress. There is no way for you to know if your endeavor will generate revenue, which means you will probably wait until you are sure it will work before you act. But if you can’t be sure (and you can’t), you won’t act.

Around and around it goes.

If you are searching for “yes” to the money question, you will feel fear every time you create a new video or go to click on the checkout button of a webhosting platform. You’ll be terrified every time you pick up the phone to make a sales call or approach a new customer in a store.

If you are worried about the profit, you revert to a scarcity mindset:

“I don’t know that this article will make money, so I probably shouldn’t post it.”

“Someone else is already doing something similar; I won’t be different enough to standout and earn an income.”

“What if I spent a little money to make this happen, but I never earn it back? I’ll have wasted it!”

Is that true? What if you didn’t make any money back, but you helped someone by spending it? You gave a gift; it was charity.

You do need to eat, which might mean you need a job while you seek to serve other people. If you work to answer the question, “Will this help people?” you will find that your ideas come naturally. They will be much easier to send out into the world: you won’t hesitate, because there is much less riding on the outcome.

In fact, the outcome is practically harmless. You either end up right where you started, or you make change happen. If you only help one person, then the answer to the question is a resounding “YES!”

I think the secret is faith and the right mindset. The right mindset is seeking to help people because you want to help them, not because you want to profit from them. Ironically, if you help enough people, you will be much closer to turning a profit than the fool who is focused on it.

Seth Godin says it all the time: “Ideas that spread, win.” They do. Helping others spreads, which means it wins. If you help people, they will know who you are. If they know who you are, they will come to you for more help. They will probably tell their friends about you as well. Soon you have an audience, people who trust you because you sought to help them, not profit from them. When people trust you, you win.

Live a life of abundance and give, give, give. Have faith that if you help enough people, the money will come.

And if it never does?

Well…you still helped a lot of people.

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