Profit is Hot Again.

If you have children who are teenagers right now or if you have seen any teenagers recently, you have likely noticed how baggy their clothes are. It’s always weird to me the timing of fashion trends. Baggy clothes used to be hot in the 90s and they are now back in fashion. Sidenote, I always thought that baggy clothes were great because you could “grow” into them. Maybe this isn’t true.

Like fashion, business goes through similar trends. Years ago, everyone was talking about Good to Great by Jim Collins. Over the past 14+ years, the major trend behind most companies can be boiled down to one word: growth.

Tech companies became famous for taking this trend to the extreme. Until late 2021, Tesla was worth more than all other carmakers combined. It wasn’t because of their ability to deliver cars (they have tiny volume) or the quality of Teslas (it’s notoriously bad). It wasn’t even based on actual growth but future growth. You would hear investors say how one day Tesla would dominate the car market, how their batteries would be a standalone business or how they would become the dominant player in a world of operating systems for cars.

Tesla stock has crashed today as profit becomes more important. Granted, it is still worth more than Toyota or Ford. That’s the thing about changing business trends. You never know what the future trend might be or how to prepare for it.

2023 is the year of profit and businesses need to find levers for more profitable decisions. In my work with clients, I helped identify these decisions across six major areas: Pricing, Customers, Brand, Technology, Product, Value. Any one of these areas can drive profit and the best companies find two or three to increase their chances.

Here’s a short primer on the six areas.

  • Pricing = pricing increases, decreasing costs, etc.
  • Customers = new customer segments
  • Brand = strong brand means less pricing hesitation or marketing investment needed
  • Technology = automation, decrease costs, better service
  • Product = new products or services
  • Value = charging for all value provided to customers

Profitability is back in vogue. Go back to your management team and start thinking about where future profit will come from. If you need help, check out a short video I created on how to find profitable decisions across the six areas I mentioned above. It’s likely having a cheat sheet at your fingerprints.

Photo by Bryan Papazov

One more thing before you go!

I have noticed a pattern among the best leaders. They have a high Decision Confidence, a term I use to describe their ability to make the right decisions and convey those decisions to others. I honestly believe that this is one of the most important skills to hone and build.

That's why I am hosting a 90-minute virtual event where I will talk about how to develop unshakable Decision Confidence. You will learn how to:

  • Develop unshakable confidence in yours and your team’s decisions
  • Increase the speed at which you make the right decisions
  • Help others make their own decisions without procrastination
  • Find more profitable decisions and tackle them boldly
  • Learn how to deal with high level of uncertainty
  • Use data to drive decisions while simplifying reports
  • Retain your best employees by giving the ultimate perk: autonomy
  • Stand out in organizations as a confident leader others want to follow
  • Move your organization into a higher gear without missing a beat
  • Learn how to build decision confidence using easy daily and weekly actions

The virtual event is happening on Tuesday, February 28, 2023 at 7:30AM – 9:00AM US Pacific Time. There's limited seating.

Learn how to increase your Decision Confidence to build your business, help your team make better decisions and accelerate your career growth.

Register for Event