So, you want to make more money

September 1, 2004 By    

There’s nothing un-American about wanting to make more money. How you do it could be an issue in these times of corrupt executives, but the desire is American. Why you want to do it is not an issue; maybe it’s to get rich or support a favorite charity. Only you care The question is how do you do it?

  • Decide how much you want to make and when you want to make it.
  • Decide what you are prepared to invest of yourself and your personal life.
  • Clearly understand your strengths and weaknesses.
  • Decide what you are going to do to make your money.
  • Clearly define all the resources you have: Money, time, people, relationships, customers and partners.

You are likely to find these first responses represent what you really seek. Once these things are understood, you are ready to go to work.Quickly write down your first response to the issues. (You may recognize this as the initial framework of a business plan.)

 Dwain Willingham
Dwain Willingham

How do you go about it? First, establish macro goals. Then decide the amount of energy you are prepared to give those goals. Your strengths and weaknesses are key here. If you are weak in operations, you know you will need someone who is strong. If financial management is your weakness – well, you get the idea.

Deciding what you are going to do to make money can be more difficult. Some say, “Do what you really enjoy and the money you want will come.” Does that have to be your dad’s retail propane operation? Not necessarily.

It may be that the business is a resource to help you do what you want. Converting it to cash may be the route.

An example might be a 2 million gallon operation grossing $50,000 per year to the owner – salary and all. The owner may simply want to double his income without committing a significant amount of more time to the company.

Based on our experience at Propane Resources, it is likely that margin management and a good, modern system would help him reach that goal. A simple gross margin increase of 2.5 cents could be the answer.

Or, what about the 3 million gallon operation wanting to grow into a 25 million gallon regional operation within five years? A little different problem and one that requires more planning, resources and leveraging of the leader’s time. A business plan will will be a tool to help obtain the money needed, the employee resources needed, and so on.

So, you want to make more money? It will begin with a plan. A plan begins with you. As someone once said, plan the work and work the plan.

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