Can we have a very practical talk today, you and I?
Because this very practical conversation could save your year…or make your business easier…or perhaps more profitable…or send you on that vacation without a call or four from the business.
We’re at the end of January. By now you should have a pretty good handle on your 2019 financials…of course, the basics like how much you made (gross revenue) and how much you kept (net profit).
But what about all those numbers in between?
Do you know what they are telling you?
When B Sweet Coffee looked at their numbers…all their numbers…they were stunned. Then they were scared.
In their heads, B Sweet believed their canned coffee product cost $1.40/per can to make. They wholesaled it for $1.77. It appeared they were making a little money on every sale, at least at the gross profit level.
But that belied the financial pressure they were feeling. They were stressed and stretched and didn’t have a handle on why.
The problem was those numbers were the ones in their heads.
When they were forced to sit down and really calculate the canned coffee cost, the real number was $1.83.
They were losing $.06/per can…and that’s before all their expenses were considered.
Now your financial situation is certainly different than B Sweet. We hope it’s better or even much better.
But have you examined ALL YOUR NUMBERS to see if you could put more to the bottom line without selling more?
Have you doodled to determine if your selling price is properly calculated based on the costs to deliver your product, program or service?
When was the last time you checked out your recurring expenses to make sure you still require the software or support?
If you make one pledge to yourself in 2020, please integrate a monthly, quarterly and yearly analysis of your financials. Then make the necessary adjustments.
If decoding your financials isn’t one of your special skills, grab your CPA and ask for their analysis and input.
Whatever you do, just don’t execute 2020 without the informed guidance of your financial numbers.
You might find 2020 is the year you make more without working any harder…you know…easier, simpler and more profitable.
Go forth and do great things,