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Know Your Numbers

Knowing your numbers is the second financial success pillar.  Do you know business is defined as organized for profit?  However, many businesses fail due to lack of cash flow and profit to sustain the business.   To avoid cash and profit leaks, we help our clients audit their expenses to understand potential leakage and make sure expenses are not growing faster than revenue.   To ensure everyone in the business is working on profit generating activities, we first have to define the most critical number in the business that moves the needle.  This critical number must be understood by everyone, tracked weekly and reported often.  You are what you measure and therefore have a peace of mind financial tracking system, so you have timely weekly and monthly reports to gauge the financial health of your business and make timely decisions.   Keep in mind money does not have a brain and it is meant to be managed.  We are the brain behind it, and it has been a game changer for my clients to create a predictable profit plan to direct the resources to maximize the return on investments.  Pricing is another key lever to increase profits; however, I have seen most business owners try to cut costs first before raising prices.  Lastly, most people overestimate how much they can accomplish in a year and having an annual budget is not sufficient to grow your business.  We help clients create a three-year strategic plan to ensure they have the runway to invest and operationalize their visions into financial reality.