Decoding the Messages in Your Numbers
Nov 22, 2023Today Shannon delves into one of the most common struggles faced by entrepreneurs – the feeling that their cash is mysteriously disappearing, despite their business being profitable.
Shannon discusses the significance of cash flow and the importance of understanding where your money is coming from and where it's going. She shares insights from a recent CFO power session with a client, where they uncovered key factors affecting the client's cash flow and financial goals.
One major takeaway from the power session is the realization that by bringing on just two new clients a month, the client could significantly improve their cash flow and reach their desired income level. Shannon guides listeners on converting big goals into actionable steps, such as upselling existing clients or seeking referrals, providing a clear path to achieve financial success.
A crucial aspect highlighted in the episode is the need for businesses to ensure that they are not depleting their reserves by taking out more cash than the business can sustainably generate. Shannon brilliantly uses the analogy of calories in, calories out, emphasizing the importance of replenishing the dollars taken out of the business.
Furthermore, the episode explores the concept of clients versus revenue, particularly in industries dependent on insurance providers. Shannon shares a surprising realization from the power session regarding the impact of a particular insurance provider on the client's revenue. Despite delivering a significant number of clients, the revenue share was considerably lower due to the high percentage deducted by the provider.
This episode serves as a reminder for entrepreneurs to analyze the sources of their revenue and ensure they are not losing out on potential earnings due to such factors.
As always, we encourage you to take action and apply the knowledge shared in this final episode to your own business. Remember that the information we provide is for educational purposes only and not individual tax advice.
