Powering Up Profitability: Your Numbers
Welcome back to our series on Powering Up Your Profitability. In this series we are sharing 5 tips, along with specific action steps, you can take right away to begin powering up your profits!
This weeks tip is about developing a new relationship with numbers.
Miss a tip? No worries!
Tip # 1: Plan For Growth
Tip #3: Cash Is King
This week is about having a new relationship with your numbers.
Now I know by saying that a number of you just took a deep breath! But remember the money is for something! Stay connected with that vision and then read on.
We are masters at deceiving ourselves, especially when it comes to results or purchasing something that we have an emotional attachment to. As a result, we will often tell ourselves we are on track, when in fact the opposite could be true.
Learning how to work with your numbers is a business skill.
The good news about skills is they can be learned. I am not suggesting that you learn accounting, I am suggesting that you learn how to connect with the story your numbers are telling you, so that you can make confident financial decisions based on numbers.
Learning to work with a forecast will help you stay on track and make decisions that are in line with your goals.
Imagine… the peace of mind knowing what to say yes to and what to say no to.
Imagine… being able to silence the chaos that goes on in your mind each time you are making an investment decision in your business.
Often this is the time when having the right players on your team can be important.
There are typically 3 players:
This is typically a very organized person who can make sure that your bills are paid on time, your receivables come in on time and your bank account is in balance. Sometimes they also can run payroll.
This is the person who keeps you in compliance for tax. When they are on top of their game they can suggest strategies for paying the least amount of tax possible.
This is the person who looks at your numbers for operations and management. They analyze the story the numbers are telling you and understands the impact on both your profit and loss (cash flow) and balance sheet (growth and wealth development). A CFO also does financial projections and tracks profitability.
Connect with the story your numbers are telling you. If this is a new skill for you be sure to reach out to the right team member who has the skills to help you get started.
If you are eager to learn about all of these 5 tips right away, along with 5 more, you can download our 10 Tips to Increased Profitability.