Hey, it's the Profit Mastery team.
The most common question we hear when it comes to financial management is: “where do I start?”
There is so much information coming at you as an owner that the idea of reviewing financial statements triggers a panic attack.
Fortunately, we have a tool to help with this…
THIS WEEK'S ARTICLE
What should you fix first?
Colin opens with the typical self-diagnosis for financial problems:
Sales aren't growing as fast as I want
I'm going to run out of cash in a few weeks
I haven't touched my books in a few months
I'm not making any money (profit) in this business
I have this big loan payment I'm making every month
From there, you dig in and figure out what's broken on your own. Or you hire someone to tell you what's broken, then go fix it on your own.
Either way, you still have to figure out what's broken...
We call this defining your financial situation. A simple checklist that pins down the current financial state of your company (and you as the owner). No deep analysis or time commitment required (it’s super simple).
Identifying your financial situation tells us where you are today and acts as a routing tool for the question: “where should I start?”
Give it a read and see where you’re at…
WORTH A LOOK
A few finds from this week
Cash Flow
Cash flow is the #1 challenge for 57% of owners in Fora Financial's mid-year pulse survey, ahead of inflation at 42%. (Metro Atlanta CEO)
On the other hand, 72% of owners in the U.S. Chamber and Justworks Q3 index say they're comfortable with their cash flow. (U.S. Chamber)
Revenue
Average real monthly revenue for small businesses with 1 to 9 employees fell 1.52% in August, and fell in all 8 regions. (QuickBooks Small Business Index)
Per the Wall Street Journal, consumers continue to spend in the face of increasing worries about the economy. Businesses selling to consumers will want to keep an eye on this one.
ICYMI
Taking a closer look at your business model (part of the planning phase in the financial operating system). (Last week’s newsletter)
UPCOMING
What's on the calendar
Price for Profit, Not Just to Win the Job
Friday, October 16, 10:00 to 11:00am ET (virtual)
Free for members; $39 for non-members
THAT'S A WRAP
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.