Hey, it's the Profit Mastery team.
The planning phase is done. This week, we finally get to the numbers (we told you it was coming).
But before you analyze anything, there's one step almost everyone skips. It takes about two minutes…
THIS WEEK'S ARTICLE
Before You Analyze Your Financials, Do This
Pull up the latest income statement your bookkeeper or accountant sent you. Count the line items.
That number tells you how high you're flying:
Running a business means flying high to see the big picture, dropping lower for a closer look, then landing the plane to fix the specific problems you find.
Phase 2 of the financial operating system is about reviewing your numbers at each of those levels. We call it the Monthly Financial Review (MFR), and it has 3 steps:
Prep: the right reports, in the right format, with the right visuals
Trends: the story behind the numbers over time
Score: a ratio scorecard for the overall health of the business
It works for any business, in any industry, of any size (seasonal or not). This week starts with step one. Give it a read…
WORTH A LOOK
A few finds from this week
The 50,000-Foot View
Small business optimism slipped 0.8 points to 97.9 in September, and owners rating their business "good" fell 9 points to 48%. Uncertainty sits at 90, well above its average of 68. (NFIB)
One Month Isn't a Trend
Average real monthly revenue for businesses with 1 to 9 employees rose 1.68% in September, right after falling 1.52% in August. Up one month, down the next. That's why you look at trends, not a single period. (QuickBooks Small Business Index)
ICYMI
The 4 business owner archetypes: why two identical businesses can feel completely different. (Last week's newsletter)
UPCOMING
What's on the calendar
PMU Virtual Bootcamp
December 1 to 17, Tuesdays and Thursdays, 2:00 to 4:00pm ET (virtual)
Six live sessions with Colin, recordings included
Free for members; from $495 for non-members
Want the printed workbook? Print orders close Friday, November 20.
THAT'S A WRAP
A little homework before next week: count the lines on your income statement and hit reply with your number.
We're curious where most of you land. :)
Thanks,
The Profit Mastery Team
Know your numbers. Command your cash. Scale with confidence.
This newsletter is for education, not personalized financial or investment advice.