Does the idea of looking at your financials make you want to curl up on the floor in a fetal position? If so, you're not alone. It's time to stop hiding from your financials and learn how to turn them into a powerful business tool. It starts with getting radical with your numbers! Depending on your taste, the information can be digested through colorful dashboards or nerdy spreadsheets. Use whatever approach works for you! As long as you're taking action in your business based on this powerful information.
This is the third installment of the Five Steps to Increase Profits bonus series. Stay tuned each day this week for a new episode.
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Ep. 94: Stop Winging It With Your Numbers - You Need a Plan (Solo Episode) [From Passion to Profit Series]
Ep. 99: Stop Chasing Revenue and Focus on Profit (Solo Episode) [From Passion to Profits Series]
For more info, see complete show notes: https://www.getthebalanceright.net/blog/episode108
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Does the idea of looking at your financials make you want to curl up on the floor in a fetal position?
If so, you're not alone.
But today we are going. To get radical with your numbers. Stay tuned
Hey there, this is Heather Zeitzwolfe and you are listening to Get the Balance. Right podcast. This is day three. Of our profit series. On yesterday's show, we talked about.
Getting your financials in order. Stop having them be such a hot mess. , And make sure that you go back And listen to the first one in the series about being authentic. So on yesterday's episode. We got you all organized with your financials. And now it's time to actually. Dig in and take a look at them. Well, why do we wanna do this? Yeah, I might bring on stress for you to look at this stuff. Or maybe you're just like, oh,
Ugh, your eyes glaze over and it just seems so boring. Math numbers data. Blah, or maybe you're jazzed by that kind of stuff. Like I am. However you feel if you're running a business. You need to look at this stuff, you need to pay attention. you just shoot from the hip and hope for the best.
Because you don't know what's going on in your business. So your numbers are. important. how Do you know what your gross margins are? are Your pricing?
Do you know what your net income or net loss is?
So not only am I talking about financial numbers? I'm also talking about other things. Like how many sales calls you're making. What about. Is your marketing. converting. How many calls do you have for leads? How many discovery calls does it take with a lead to turn into an actual. Paying customer. Do you know any of these things? These are all things that we have to track. And by tracking these. We can get radical with our numbers.
All right. So the first thing. You might be thinking is I don't like looking at this kind of stuff. Okay. You're not alone. You probably a creative person. If you're listening to this podcast and creatives. Some of them like numbers, some don't. Here's what I love to do. If you've your data.
Your financials all in order, we've gotten over them being a hot mess. Then you can. Turn that data. Into beautiful graphics like charts. Pie charts graphs, all kinds of things. These will easily demonstrate to you. What's going on in your business. instead Having to dig through lines and lines of data.
Looking at percentages and. Trying to figure things out and divide and multiply and all that stuff. You can just look at some really great charts. these charts. Can just tell you in an instant. If you are cash is. Up if your cash is down, if your income is up, if your income is down and. All kinds of great information.
if you're using something like QuickBooks, They have a built in dashboard. But you can also pay a little extra money and. Get software that will hook up with your QuickBooks or whatever software that you're using.
And. Turn your data into. Beautiful. Beautiful graphics to look at . If your books are up to date. Then this stuff will be real time information. You can look at it and Adjustments and tweaks as you go.
I go into this much deeper on episode 94, which is called stop, winging it with your numbers. You need a plan. that was part of my, from passion to profit series. . go back and listen to that one, to get more. Tofu and potatoes on this subject
All right. Now that you've gotten your books in order.
. here are some key things that I want you to for. Number one, what is your net? Income net income is the difference between. Your revenue, your sales. And all the expenses. you take your. Income you minus out the expenses and that gives you.
Your net income. If it's negative. Then you have a net loss. If it's positive. All right. You made some money. If you're a sole proprietor. That net income is Your profit that's what's left over. But don't get too excited because that profit does not include.
Taxes, you still need to pay taxes from that. so This piece of information is so important because you need to know how much money you need to set aside for taxes we're send in and with your quarterlies. Another one that you can track. Is your gross. Margin. Besides episode 94, go back and also Listen to episode 99. Stop chasing revenue and focus on profit. This will explain more. About what a profit and loss. Statement is
And also for getting radical with your numbers. You'll wanna check out episode 78. Where I talk about battling tax, like a superhero. Three essential tips. Solo entrepreneurs need to know. even though you may have already filed your taxes.
This will give you information that you'll need throughout the year for tracking your financials.
And if you'd like to make sense of your profit and loss, I have a new workshop that you can sign up for. Just go to my website. It's at get the balance right.net. Ford slash workshops within S so it's get the balance right? Dot net. Slash workshops I have all my free workshops posted there.
And there's one for how to run, read and rock your profit and loss be sure to sign up for that free workshop and I will help you. Get radical with your numbers. All right. Tune in tomorrow for the next segment.
Of this increasing your profit. Series where we're gonna talk about. Adjusting the profit levers in your business.