Have you ever watched Shark Tank? How many of those people who are pitching for investment money don’t know how to answer questions from the Sharks about their business finances? They stand there looking uncomfortable, eyes to the ceiling as they attempt to crunch some numbers in their head right on the spot.
The truth is that if you are really a business owner, you could answer those types of questions on the fly. They shouldn’t be hard to answer, and your numbers should not be a mystery to you.
You as the founder of your company must know your costs, your margins, your profit and loss. You must be intimately knowledgeable of what is coming in and going out on a daily basis. You need to develop realistic expectations of when and how money will come in. Do you get paid by the hour, the project, or milestones? How will you allocate this money to the running of your business? What will go to bills, what will go to employees, and what will be left over to support your family? What will it require of you personally to keep it going?
Money can be a touchy subject, especially among women. Entrepreneurs can often get so wrapped up in the potential of their dream that they completely overlook making strategic financial decisions.
However, finances are not just something you can figure out as you go along—you must look at the numbers frequently and in detail. You must see where money is going out, and where it is coming in.
Today, we are going to start talking about the meaty stuff involved in making money. Revenue Goals. Profit Margins. Sales Models. This is the most powerful information you will master as a business owner. Remember, without sales, you got nothin. Without margins, you are in a hobby, not a business. You need both. So let's start learning how to make sure you get both, every day, year in and year out.
Being a Wonder Woman in Your Business (hint: it requires money savvy)
Jessica wrote a book that became a #1 best-seller, and it has an entire chapter on the topic of money and finances. We thought this was the perfect introduction to this sometimes intimidating topic. So start by reading that chapter, and doing the exercises.
Click the images to access the chapter:
So, how do you get to the point where you know all of your numbers on the fly? You first need clarity on your goals. You won’t know if you are making good progress if you don’t have specific goals tied to specific numbers, and then track them daily. What measured is what gets improved, so you must commit to tracking your numbers daily. No exceptions.
First, know what your Sales Model is or what is should be. To work through that exercise, use the worksheet below:
BE SPECIFIC ABOUT YOUR REVENUE GOALS: When you have a specific money goal, it makes it easier to be strategic and map out the steps to get you there.
Time to access the next worksheet to get clarity on your Revenue Goals, Pricing and Profit Margins!
WELCOME TO DAY TWO OF HAUTECELERATOR MODULE TWO!