Episode description
Today’s topic is one that is very close to my heart. I’ve worked with hundreds of business owners to increase their wealth. It’s something I’m very passionate about, and business financials are invariably intimidating. Honestly, I rarely meet a business owner who feels they have a good grasp on their costs, revenue sources, and profit, let alone what to do about any of that. The worst part is that I see so many business owners languish in “I’m still in ‘investing in my business’ mode” which is always code for “I’m not paying myself enough.” It’s a common, chronic condition that I’m out to cure!
Business can be the golden road to an amazing lifestyle, but you have to PAY YOURSELF in order to accomplish that. Otherwise, you’ve simply built yourself a job.
So, let’s get to work decoding your business numbers.
In today’s episode, we’re digging into how to measure financial performance for three types of businesses: product businesses, brick-and-mortar businesses, and online businesses. You’ll learn what the most successful business owners I’ve worked with do (and look out for) to meaningfully measure performance, turn a profit, and consistently take home a paycheck.
If you’ve struggled to measure your success by key performance indicators, or worse, struggled to use key performance indicators that simply didn’t apply, this approach will feel like a breath of fresh air - and can help you figure out exactly what you need to do to achieve smart, sustainable growth.
Joining me for today’s conversation is Danielle Hayden. After 10 years in the boardroom as a CFO, she’s now the co-owner of Kickstart Accounting Inc, where she helps women get out of overwhelm, stop hiding in the dark, and take home the paychecks they deserve.
So, are you ready to stop hiding from your financials so you can finally get to know your business, inside and out? Then you don’t want to miss this episode. Tune in to Profit Boss® Radio today!
Here’s what you’ll find out in this week’s episode of Profit Boss® Radio:
- Why women constantly struggle to pay themselves from their businesses.
- Why the metrics and KPIs so many business coaches focus on don’t apply.
- Why failing to understand financials makes it nearly impossible to achieve profitable growth.
- Examples of great product businesses - and what makes them so good.
- When owners of product businesses should think about shutting down or considering other avenues.
- How to evaluate financial underperformance and determine if it’s time to reevaluate a business model.
- Why being emotionally attached to an unsuccessful business can be financially devastating.
- The unique metrics that make measuring brick-and-mortar business performance different from that of online businesses.
- The KPIs I use to understand where to focus my energy and make sure my online service business is growing.
- How online service businesses can effectively track time - even when they don’t bill clients by the hour.
- What business owners should be paying themselves, and how payouts should work.
- How people in their 30s and 40s should save for the future.
- Why it’s so important to understand your numbers.
- Why almost every business owner needs custom tools to measure their finances.
Show Notes
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Hendershott Wealth Management, LLC and Love, your Money do not make specific investment recommendations on Love, your Money or in any public media. Any specific mentions of funds or investments are strictly for illustrative purposes only and should not be taken as investment advice or acted upon by individual investors. The opinions expressed in this episode are those of Hilary Hendershott, CFP®, MBA.