What Your Numbers Are Trying to Tell You
Jun 19, 2023I had a power session with a client recently and discovered a few things that I think are applicable to most business owners. Understanding your cash flow is extremely important for all businesses, especially new businesses, and can make or break your success.
It is also extremely important to consider the differences between the number of clients, and the amount of revenue you are earning per client.
Tune in to hear a deep dive into these two topics and share some examples from the power session with my client.
The key takeaways from this episode are:
1. The importance of understanding cash flow: Cash flow is crucial for the success of all businesses, especially new ones. Being aware of where your money is coming from and where it's going is essential in managing your finances effectively.
2. Differentiate between clients and revenue: It's important to consider both the number of clients and the amount of revenue you earn per client. Focusing on high-revenue clients and assessing your income streams can help you identify opportunities to increase profitability and free up time for more profitable ventures.
3. Examples from a client power session: The episode dives into real examples from a power session with a CFO client, providing practical insights and illustrating how these concepts apply in real-world business scenarios.
What you'll hear in this episode:
[1:20] This episode is about being aware of where your money is coming from and where it is going not solely about expenses.
[2:22] Key takeaway #1 from a power session with a CFO client - cash flow
[4:33] One major flaw that I see in cash flow planning with a lot of newer business owners.
[5:40] Key takeaway #2 from a power session with a CFO client - clients vs revenue
[9:47] Take a hard look at your income streams and identify if there are any that you want to shut off, or should shut off, to free up time for more profitable ventures.
Related episodes:
Tips for Negotiating Business Deals
Which Financial Professionals Do You Need in Your Business?
How to Build a Solid Financial Foundation in Your Business
Resources:
Text Power to 960-609-6374
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
