Episode 138: How to Generate Your Financial Plan
Episode description
What We Cover In This Episode:
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Defining your financial plan and what it actually means to have one [0:32]
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The top 5 elements that go into a financial plan that studio owners should be watching for [2:07]
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How to approach building a chart of accounts [6:16]
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Resources that can help you with your financial acumen [11:04]
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Why having a good bookkeeper is key in this process [12:01]
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Our thoughts on working with a financial modelling coach [12:20]
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What can happen if you do not have a financial model in place [12:52]
Quotes:
“Probably the most important thing is keeping up with your books every month. You can’t create a financial plan if you don’t know what has been happening. A financial plan is not an emotional exercise, it is based on historical data. Let's try to predict the future the best we can.” [Nick, 2:17]
“You don’t need to be as granular as people tell you, of tracking every single expense and writing down every subscription you are written for. It’s really important to create a clean chart of accounts for yourself.” [Nick, 6:09]
“[A financial plan] is very therapeutic. It’s like I have the answers of where my business is going in the next 12 to 18 months, because it’s not a guessing game. Like I said, short of a pandemic it’s pretty predictable of what the next 12 months look like if you have two or three years of business under your belt.” [Nick, 8:51]
“Don’t you want to know where you are going? Part of being a business owner, it’s trying to get control over where you are going. If you are an employee you don’t have to worry about that, but as a business owner, I lose sleep if I am not sure about our next 6 to 12 months.” [Nick, 10:31]
LINKS:
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https://www.fitdegree.com/blog
https://www.youtube.com/channel/UChJ5rK6zWPXjbxtUQx3ys9Q