“I work with Business Leaders who are frustrated by profit leaks or slow growth, so they see stronger profits and smoother operations. My process is practical, personalized, and guaranteed to deliver results.”

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Welcome: 4,298 email subscribers - 4,695 LinkedIn connections - 914 Social Media friends/followers - with >112,000 monthly impressions

It's August...Are you at 58% of your Dashboard Goals?

The Leadership Brief - One idea. One challenge. One practical insight to help you become a stronger leader and build a more profitable business.

A CEO once told me something I'll never forget.

He leaned back in his chair, looked around to make sure no one else could hear, and quietly said...

"I don't have anyone I can talk to."

At first, I thought he meant inside his company. He shook his head.

"My employees need me to have the answers. My managers expect confidence. My board wants results. My family doesn't need the burden of everything I'm carrying."

Then he paused.

"So I carry it alone."

That conversation has stayed with me because I've heard versions of it from business owners, CEOs, presidents, nonprofit executives, and community leaders over and over again.

Leadership can be incredibly rewarding. It can also be incredibly lonely.

Every day you're making decisions that affect employees' livelihoods, customers' experiences, your organization's future, and your own family's security.

The difficult decisions rarely come with perfect information. They come with uncertainty. And when you're the one wearing the crown, everyone expects certainty.

That's why history's greatest leaders surrounded themselves with trusted advisors. Not because they were weak. Because they understood something many leaders forget:

Perspective is a competitive advantage.

A trusted advisor doesn't make your decisions.

• They help you ask better questions.

• They help you uncover blind spots.

• They challenge your assumptions.

• They provide an objective perspective when everyone else is influenced by politics, emotion, or fear.

That's why I do what I do.

I help leaders build healthier organizations, stronger leadership teams, better systems, and more profitable businesses—not by taking over, but by walking alongside them. Because no leader should have to carry the weight of the crown alone.

Heavy is the head that wears the crown.

The wisest leaders don't carry that weight by themselves. If you've been carrying it alone, perhaps it's time to have someone sitting on the other side of the table whose only agenda is helping you succeed.

You Have $25,000 in Bills and Only $2,000 in the Checking Account:

Whose Problem Is It?

Leadership Strengths and Weaknesses Exposed by a Cash Crisis

Monday starts with a problem nobody can ignore. Accounts Payable has $25,000 in invoices due this week, payroll lands on Friday, and the checking account holds a little over $2,000.

The first question is often, "Whose fault is this?" That question produces defensiveness, not solutions. Leadership strengths and weaknesses show up in what happens next: who takes charge, who tells the truth, and who recognizes that their decisions helped create the pressure.

This is not a cash flow management tutorial. It is a leadership test, because financial health is shaped by choices made across the company.

You Have $25,000 in Bills and Only $2,000 in the Checking Account: Whose Problem Is It?

The person responsible for the cash position owns the immediate response. In many companies, that is the CFO, controller, finance manager, owner, or operations leader. They must know what is due, what cash is available, and which commitments need urgent attention.

However, the entire leadership team owns the conditions that led to the shortage.

A sales leader may have approved discounts that reduced margin. An operations leader may have committed to supplies or overtime without checking the budget. A department head may have added staff before recurring revenue could support the payroll. An executive may have accepted an overly optimistic revenue forecast as a reason to keep spending.

Those decisions may have made sense in isolation. Together, they can leave the company exposed.

Accountability means naming responsibilities and correcting decisions. Blame means finding a person to carry everyone's frustration. Leaders need the first and must avoid the second.

Did you know: if you double 1 penny every day for 30 days; you'll have over $5million dollars? (compounded growth)

New to help you...

• Leadership Accountability

• Building the Foundation for a High-Impact, Financially Sustainable Nonprofit

• The Business G.R.O.W.T.H. Blueprint™

• The SMART Leadership/Business Model

• Leadership Freedom Index™ Executive Assessment System - FREE Assessment

Everyone celebrates clicks, likes, views, and followers.

But here's the uncomfortable truth...None of those pay your employees.

The numbers that actually matter:

✔️ Qualified leads generated
✔️ Sales conversion rate
✔️ Customer acquisition cost
✔️ Customer lifetime value
✔️ Gross margin
✔️ Net profit margin
✔️ Cash flow
✔️ Customer retention
✔️ Referrals
✔️ Revenue per employee

A post with 10,000 likes and zero new customers is entertainment.

A post with 200 views that creates three new clients is marketing.

Don't confuse attention with achievement. Measure what moves your business—not what strokes your ego.

Vanity metrics make you feel successful.
Business metrics make you successful.

Tip: 7 Signs You're Working Under the Wrong Leader

1. You fear making mistakes more than you enjoy succeeding.
Every decision feels risky because failure is punished instead of used as a learning opportunity.

2. Communication only happens when something goes wrong.
The only feedback you receive is criticism. Recognition and encouragement are almost nonexistent.

3. Everything becomes urgent.
Poor planning creates constant emergencies, leaving everyone stressed and burned out.

4. Trust is replaced by control.
Micromanagement becomes the norm because the leader doesn't trust people to do the job they were hired to do.

5. The best people keep leaving.
High turnover among your strongest coworkers is often a leadership issue, not an employee issue.

6. Growth is discouraged.
New ideas are dismissed, initiative is punished, and people stop trying to improve because it isn't worth the effort.

7. You feel smaller than when you started.
A great leader builds confidence, capability, and character. The wrong leader slowly drains all three.

Leadership Takeaway

The best leaders don't create followers. They create confident people who become leaders themselves.

If your leadership leaves people stronger than you found them, you're leading. If it leaves them afraid, exhausted, or disengaged, it's time to change your approach.

You've Heard this before, "People don't quit jobs.

They quit leadership."

The question every leader should ask isn't: "Why are people leaving?"

It's:

"What is it like to be led by me?"

This single question can change an organization.

Reflect, Breathe, and Let go!

"Make Me Want to Pay You More!"

I remember a previous employer (friend) who told me this.

Guess what I did?

I did exactly as he told me to do.

Here's the reality... Every organization has people who fill a position...

...The organizations that thrive also have people who create value far beyond their job description.

Those are the people who become trusted. Those are the people who become leaders. And those are often the people whose compensation grows because their impact grows. So before you ask, "When is my next raise?" Ask yourself, "What did I do this week that made my organization more successful?" That's a question every employee should ask. And every leader should notice.

Brand = Product + Promise + Personality

Products can and will change - Promises should not change - Personality cannot change

Keep Profits - Filter Noise

What is Transformation Growth?

*Strategic Growth Planning

*Executive & Team Leadership Development

*Performance Optimization

*Change Management

*Mentorship & Coaching

brian@phelpsenterprises.net

www.transformationgrowth.com

Call/Text: 605.595.3422

CommunityVotes Sioux Falls

This year's campaign hosted thousands of nominations and votes cast by members of your community. An astounding 2,613 businesses and people were nominated, but only the top nominees in each category moved on to voting.

And the results are in! Congratulations, you won... 

•  Platinum in the Professional Coaching category

•  Platinum in the Administrative Services category
•  Platinum in the Marketing and Advertisement category
•  Silver in the Organization Services category

"Most owners measure growth by revenue. The best owners measure growth by the value their business creates—and the profit it keeps."

𝗧𝗵𝗲 𝗳𝗮𝘀𝘁𝗲𝘀𝘁 𝘄𝗮𝘆 𝘁𝗼 𝗹𝗼𝘀𝗲 𝗺𝗼𝗻𝗲𝘆 𝗶𝘀 𝘁𝗼 𝗰𝗲𝗹𝗲𝗯𝗿𝗮𝘁𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗴𝗿𝗼𝘀𝘀 𝗺𝗮𝗿𝗴𝗶𝗻.

Revenue creates excitement. Gross margin creates businesses that survive. Which number do you know better?

𝗦𝗼, w𝗵𝗮𝘁'𝘀 𝘆𝗼𝘂𝗿 𝗴𝗿𝗼𝘀𝘀 𝗺𝗮𝗿𝗴𝗶𝗻? Not your revenue.

Everyone knows their revenue. But if I asked you your gross margin—right now... no bookkeeper, no CFO, no spreadsheet...Could you answer without looking it up? If not, you're not alone. Most business owners know how much they sold last month. Far fewer know the one number that tells them whether they're actually building a profitable business.

Your gross margin determines how much money is available to pay your people, cover overhead, invest in growth, and ultimately create real profit.

You can grow revenue by 20%...and still end up making less money. Revenue is a scoreboard - Gross margin is the engine.

Profit, Cash, and Spendable Funds: What to Watch

Replace the single bank balance or net income figure with a short monthly dashboard that separates available funds, obligations, restrictions, and future needs. The goal is not more reports. It is fewer financial surprises and better decisions before the pressure hits.

Read More Here....

"Revenue is what the market gives you. Profit is what your leadership allows you to keep."

Did you know true Holistic Leadership is about more than just business results?

It’s about growing in three key areas — what I call the “3 Profits”:

• Personal Profit: Your well-being, mindset, and energy.

• Professional Profit: Your skills, growth, and fulfillment at work.

• Business Profit: The measurable results your team or company achieves.

When you nurture all three, you lead with clarity, resilience, and impact — and everyone wins.

𝗘𝘃𝗲𝗿𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗹𝗲𝗮𝗱𝗲𝗿 𝗵𝗮𝘀 𝗮 𝗩𝗶𝗸𝗶𝗻𝗴 𝗶𝗻𝘀𝗶𝗱𝗲 𝘁𝗵𝗲𝗺.

No... I don't mean the beard, the axe, or the battle scars.

I mean the willingness to face uncertainty.

The best leaders don't become stronger because life gets easier.

They become stronger because they stop running from the hard conversations, the difficult decisions, and the responsibility that comes with leading others.

Leadership is a transformation-A Transformation Growth

You don't wake up one day as a great CEO, business owner, or executive. You earn it through:

• Difficult conversations.

• Tough decisions.

• Financial pressure.

• Failed ideas.

• Sleepless nights.

• Choosing courage over comfort.

The warrior isn't someone who never feels fear. The warrior is the one who moves forward anyway. Every successful business has a leader who decided to transform before they expected the organization to.

If you want your business to grow, become the leader your business will need six months from now—not the leader it needed six months ago.

Question: What leadership battle are you facing right now?

Let's Talk

***FOR NONPROFITS***

The Region's ONLY Tripple Certified: CNE, CDE, and CNC

When Friendship Replaces Governance

Many nonprofits begin with boards made up of friends and trusted supporters. That's natural. But as an organization grows, a board's loyalty must shift from individuals to the mission.

When a board is dominated by personal relationships, it can become difficult to ask hard questions, provide independent oversight, address conflicts of interest, or hold leadership accountable. Decisions may become based on loyalty rather than what's best for the organization.

A strong board doesn't exist to protect its leaders—it exists to protect the mission. Healthy governance welcomes diverse perspectives, respectful disagreement, and accountability because that's how nonprofits earn trust, strengthen leadership, and ensure long-term success.

Many nonprofits begin with boards made up of friends and trusted supporters. That's normal. But as the organization grows, governance must be driven by the mission—not personal relationships.

When a board is dominated by friendships, it often leads to:

• Loss of Independent Oversight

• Groupthink

• Conflicts of Interest

• Weakened Accountability

• Reduced Donor Confidence

• Lower Staff Morale

• Personal Rather Than Strategic Decisions

• Poor Succession Planning

• Greater Regulatory Risk

• Erosion of Public Trust

A healthy board isn't measured by how well members support each other—it's measured by how well they protect the organization's mission through accountability, transparency, and independent governance.

Call/Text/Email to discuss your challenges and/or opportunities.

Prove it to yourself...

“We help owners and leaders increase their profits using our proprietary profit acceleration systems. In fact, work with us for 3 months and if we don’t double our fee in ADDED profits; we’ll continue to work at no charge until we do.”

Our guarantee is simple, and it’s backed by results:

“We help owners and leaders increase their profits using our proprietary profit acceleration systems. In fact, work with us for 3 months and if we don’t double our fee in ADDED profits; we’ll continue to work at no charge until we do.”

"Better leaders build better businesses.

Better businesses build better profits."

"Be the Water in Someone's Desert"

Join a select circle of leaders committed to shaping the future.

Tip #51: Your Gross Margin Is Telling You a Story

Gross margin is one of the earliest indicators of whether your business is becoming more profitable—or quietly becoming less efficient.

What is Gross Margin?

Gross Margin = (Sales – Cost of Goods Sold) ÷ Sales × 100

Example:

• Sales: $100,000

• Cost of Goods Sold (materials, direct labor, freight, etc.): $62,000

Gross Profit = $38,000

Gross Margin = 38%

That means for every $1.00 in sales, your business keeps $0.38 to pay for:

• Rent

• Payroll

• Marketing

• Insurance

• Equipment

• Taxes

• Debt payments

• Profit

Why Gross Margin Matters More Than Revenue

Imagine two companies each generate $5 million in annual sales.

Company A has a 42% gross margin.

Company B has a 31% gross margin.

The difference?

Company A has an additional $550,000 available each year before overhead expenses.

Same revenue. Completely different financial strength.

What Causes Gross Margin to Decline?

Many owners don't notice margin erosion until profits disappear.

Common causes include:

• Discounting prices to win business

• Material costs increasing without price adjustments

• Inefficient production processes

• Excessive labor hours

• Waste and rework

• Poor purchasing practices

• Selling lower-margin products more frequently

Revenue can continue climbing while profitability quietly falls.

A Technical Exercise

Calculate your gross margin for:

• This month

• Last month

• The same month one year ago

Then answer three questions:

1. Is the percentage improving or declining?

2. What changed operationally?

3. Was the change intentional or accidental?

If you can't explain a movement of more than 1–2 percentage points, it's worth investigating.

Advanced KPI

Don't stop with one company-wide gross margin.

Track gross margin by:

• Product line

• Service category

• Customer

• Salesperson

• Project

• Location

Many businesses discover that 20% of their customers generate nearly all of their profit while another segment actually destroys it.

Takeaway

Revenue creates excitement. Gross margin creates options.

Businesses that consistently improve gross margin generate more cash, absorb economic downturns better, invest more confidently, and build significantly more long-term value.

This week's action: Calculate your current gross margin. Then compare it to the same period last year. The trend will reveal far more about your business than revenue alone.

5 Published Books to help and to serve:

(>4,674 Followers on LinkedIn)

May your QUEST be blessed - Coram Deo!

Brian Phelps, CNE, CDE, CNC

Phelps Enterprises, LLC/Transformation Growth

Build a business you could sell tomorrow, but don’t want to.

Let’s Grow Your PERSONAL, PROFESSIONAL, and BUSINESS Profits GUARANTEED

• Owner/Leader/Advisor | Holistic Business Advisor

• Amazon #1 Best Seller

• SCORE Mentor/Volunteer

• SF Chamber Member/Dell Rapids City Council/Avera DR Board Member

• Certified Maxwell Leader (Trainer, Coach, Speaker, DISC Behavior Analysis)

• NANOE Certified Non-Profit Executive, Development Executive, and Consultant

Cell: 605.595.3422

brian@phelpsenterprises.net

www.transformationgrowth.com

www.phelpsenterprises.net

PROFIT Simulator

Let's Talk...

Here to Help - Here to Serve!

“We help owners and leaders increase their profits using our proprietary profit acceleration systems. In fact, work with us for 3 months and if we don’t double our fee in ADDED profits; we’ll continue to work at no charge until we do.”

Here to Help with a network of >800 coaches. 49 countries. A private group of people who are all working the same system, facing the same challenges, and sharing what's actually working right now in the real world.

*OnOn-Line Group Coaching – Free via webinar participation

Every Monday at 3:00pm central time

Custom Bi-Weekly Group Coaching:

Online content

Worksheets, videos, and study materials

Done For You Self-Coaching:

Online only content

One-on-One:

In-depth advisor training

Personal schedule of process and goals

Personal accountability

SMART Leadership - (also individual Corporate Groups):

Workbooks/materials only

Or guided leadership training

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