Why Profit is Not Just What is Left Over
For many street-smart entrepreneurs, their management style is a residual process. It is a reactive way to run a business, and it guarantees underperformance.
The Residual Trap
In this model, profit is just a result of what is left over after all other expenses are paid. If it is a good month, there is profit. If it is a bad month, there is none. The owner has no real control.
The Predetermined Solution
The BDM approach includes a base level of predetermined profits into the system as the first item of paid expense. Profit is planned for, protected, and prioritized.
Changing the Objective
This requires helping clients see profits rather than sales as their primary objective. More sales will not fix a broken margin, but predetermined profits will fix a broken business model.
Ready to take the next step?
Download The Purpose-Built Playbook today to learn how BDM helps business owners implement these strategies and build a controlled, optimized, and highly profitable business.