Entrepreneurs naturally have big dreams and the willingness to follow them. But, they often disregard the details that go along with execution.
Goals are critical, but without understanding what goes into the execution can greatly injure your company. Profitability is such a concept that needs to be considered.

Details are important

The profitability of an idea is a framework that contains two parts: 
<ol>
<li>What comes in: People, resources, funds and time.</li>
<li>What goes out: How big a step you can take toward reaching your goal.</li>
</ol>

Profitability

Money is a way of creating a measurable goal. Some goals align with giving back, but, in order for you to further any goal you have, you will need money.

It is important to make money

The fundamental idea of profit is to determine if and why an idea is worth your time.
If you have to spend more money to gain less, you need to have a great rationale to do it.

The concept of profit

Not every opportunity will bring in profit right away. An idea now can mean more profit later on. An early investment in a product can pay off massive dividends down the road.
However, you need to have a well-informed opinion on the timeline as well as how much money you might need to invest until you reach that point.

The time lag 

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I hear this sentiment so often from creative entrepreneurs and small business founders. Entrepreneurs by nature tend to be people who have big dreams and the guts to follow them.
On the flip side, they often shy away from, look down upon, or downplay the details that go along with execution.
You can set big, hairy, audacious goals for your company. Goals are critical. You can also determine your core values. But without understanding what goes into the execution, you risk tanking your company.
One concept to use for a framework around execution is the concept of profitability.
When you think about the profitability of an idea, you need to think about two parts: what goes in and what comes out.
People, resources, funds, and time go in. How big a step you can make toward reaching your goal is what comes out. Here are three ways for a big picture creative think about profitability.
<h2>Admit that it is important to make money.</h2>
Money is a way of creating a measurable goal. Some creative people feel shame about wanting to make money. Or believe that it shouldn't be a priority. Especially if that creative is also a woman.
Not everyone is looking to make $1B. Some goals align with giving back to a certain community. Some companies are outright non-profit organizations. That's ok. In order for you to further any goal that you have, you are going to need money. Being fiscally responsible and socially conscious are not mutually exclusive.
<h2>Determine if and why an idea is worth your time.</h2>
This is the fundamental concept of profit.
I worked with a nonprofit company last year. They had an amazing cause and wanted to put on a huge fundraising event in support of their mission. The leaders were well connected in the community. They knew they could host a large gala that would bring in quite a bit of money.
I asked them to put together a budget for the event. The number of people they wanted to invite meant they needed an enormous space. The cost of the event space erased the amount of money they would raise for the organization. So, the revenues would be large, but the profits would not exist.
We figured out a way to scale back the event. The revenues were not as high as if they had hosted a grand affair. But more money came back to the organization, which was the goal.
The moral is, if you have to spend $2 to bring yourself $1 closer to your goal, you better have a great rationale to do it.
<h2>Understand the time lag between investment and outcome.</h2>
Not every opportunity is going to result in profit right away. But an idea now can mean more profit down the road. It's pretty common for a biotech or pharma product to lose money in the first year it is on the market. A lot of money is required to get a sales force up to speed and a marketing campaign right. That early investment in a product will pay off massive dividends in years 2-10. The revenues from those latter years will more than make up for the early investments. So the investment is worthwhile.
Its ok if an idea isn't profitable right away. Investing in things like coaching or writing classes don't have an obvious near-term profit. But, have a well-informed opinion on the timeline. And how much money you might need to invest until you reach that point.
</div>

I hear this sentiment so often from creative entrepreneurs and small business founders. Entrepreneurs by nature tend to be people who have big dreams and the guts to follow them. On the flip side, they often shy away from, look down upon, or downplay the details that go along with execution.

Ideas Are Great, But Execution Is The Best. Here's Why

Details are important

Profitability

It is important to make money

The concept of profit

The time lag

Phillip Mcclain's ideas are part of this journey:

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