“The constant, proactive monitoring of your business’s profitability - that is a true growth strategy.”
In this episode of the Master Delegator podcast, Kristy Yoder interviews Lance Johnson, a seasoned multi-business entrepreneur and the founder of Amplo Media, a digital marketing agency specializing in lead generation and customer acquisition. With a rich history of diverse entrepreneurial endeavors starting in his teenage years, Lance brings invaluable insights into effectively managing and scaling businesses.
Throughout the episode, Lance shares his journey from importing farm supplies at 17 to establishing a prominent digital marketing firm. He delves deep into the critical importance of active profitability monitoring and cash flow management for sustainable growth. Lance discusses the necessity of setting profitability targets and repeatedly emphasizes the reinvestment of profits to fuel further business expansion.
The discussion also explores Lance’s innovative approach to Human Resources, particularly in service-based companies. He advocates for a "slow to hire, fast to fire" strategy, stressing the importance of hiring the right fit for future growth and swiftly addressing underperformance. Amplo Media’s positive Performance Improvement Plans (PIPs) and commitment to employee development highlight their dedication to nurturing talent while deftly managing potential exits.
Key Takeaways
- Monitor profitability beyond bank statements to strategically reinvest in growth.
- Ideal gross profit for small service-based businesses is about 30%; aim for a net profit of 10-20%.
- Adopt a “slow to hire, fast to fire” approach to ensure the right fit and maintain high performance.
- Regularly update projections for customer revenue and expenses to manage cash flow effectively.
- Define your version of business success and align your actions to meet those goals, impacting both personal life and professional sustainability.
Lance poignantly emphasized: "Entrepreneurship is vital for vibrant communities, and effective financial management is pivotal for business sustainability and growth." Embrace the insights shared in this episode to refine your strategies, foster community impact, and secure your entrepreneurial success.
Check out the full episode for more of Lance’s expert advice and fascinating entrepreneurial journey!
Learn more about Lance Johnson here:
LinkedIn
amplomedia.com
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