Why Simplicity is the Key to Profitability

In today’s blog, I want you to KISS: Keep It Simple and Sexy.

I believe that when it comes to human behavior, the more complicated a task is, the less likely we are to stick to it. I’ve talked before about how we are more likely to stick to a simple and easy diet than one with complex recipes and rare ingredients.

But I also believe that it’s in our nature to think something HAS to be complicated to be effective. Especially in business.

That’s just simply not true!

I’ve sat down with entrepreneurs and they’ve shown me their workflow – the processes they follow in their business. Some of them have 32 steps. That’s a really complicated system!

Often, I can see immediately that they can eliminate 10 of those steps by using an app.

Yes, having a 32-step process in your business MIGHT work – but you’re more likely to lose consistency, or make mistakes.

Accounting is a complicated business!

Most entrepreneurs didn’t study accounting at school, so they find the finance stuff hard enough as it is. We don’t need to add complicated processes to make it even harder!

If you’re running a business, you’re in it for the long haul, and success will only come if you remain consistent. The key to consistency is simplicity.

In last week’s blog, I talked about how to save receipts for your business, and went into all the amazing things that Quickbooks Online can do. So many people will have the intention of following the QBO process but don’t – because it’s a bit too complicated for them.

That’s fine. The goal of the blog and training was to show you how to save your receipts, so if you want a simple system you’ll stick to, just snap a pic and upload to Google Drive!

That is keeping it simple – and you’re more likely to keep on top of it!

If you can’t be consistent, it’s not going to work

It’s time to take a look at all the processes within your business. What are the things that you’re just not doing?

What are the items that never get crossed off your to-do list?

My guess is that the things that continually get put on the backburner in your business are the things that are too complicated. I want you to take a look at them and ask yourselves:

“Can this be simplified?”

As we grow and scale our businesses, we can fall victim to Shiny Object Syndrome – constantly wanting to update our systems and processes.

That’s great, and I agree. Your processes probably DO need updating if you’re elevating your business. But updated processes don’t need to mean complicated processes.

Making something complex doesn’t ensure that you’ll get the results you’re after. You can 100% run a profitable business and still have a simplified finance process!

How to simplify your bank accounts

I’ve had people tell me they need 18 separate bank accounts to track every single aspect of their finances. If that works for you, and you can actually keep consistent with your transactions, then great.

But managing your money doesn’t need to be that complex!

I believe that business owners need the following bank accounts, and no more:

• One account to track revenue and expenses 
• A second (savings) account for all taxes to be transferred and kept separate until it’s time to pay
• A third account to save for the big things – like investing in a mastermind, for example
• A fourth account to be a nest egg.

COVID did a real number on everyone, not least of all in realizing they didn’t have money to fall back on. If anything good is to come from the pandemic, it’s that people are now aware of the importance of having a nest egg.

Why less is more

Sure, you could run 18 separate bank accounts and find that you’re staying on top of all of them consistently. 

But it’s more likely that you’ll lose track, or make mistakes.

If you’re only managing FOUR bank accounts, you’ll be able to see exactly where your money is going – and track that money regularly.

I give a load more examples of how you can simplify your processes in my YouTube video, but the message from this post is that you need to keep it simple.

A great place to start is by downloading my FREE Profit Plan tool to help you start tracking your income and expenses in a simple and hassle free way.