Build Your Profit Systems With You in the Front Seat
It’s important to put yourself in the driver’s seat of your finances and your financial decision-making.
A good financial decision-maker doesn’t need to be schooled in accounting, they need to have the basic principles, have a profit team, and have a profit system.
Here are some tips to make sure you’re set up for success!
Set up your Systems
Just like a house, your business must have the right financial foundation before you start adding too much, too fast. Without a foundation, you’ll leave behind important functions and systems in your business that can actually help you make more money.
Your profit system is the ground floor of your business. It ties together all of the key information that you need to run a profitable business. This includes invoicing, payment, customer data, website, and marketing stats. That data needs to be translated into an easy-to-use report or dashboard for you to make financial decisions.
Getting your admin and finance ducks is a must to building your business foundation. Here are the financial foundation essentials!
✔️Taxes – As an entrepreneur, you’ve got your fair share of taxes, and it’s important that you understand your tax obligations and build a plan to stay ahead of them. Make sure that you are aware of all of your taxes, pay the taxing authority on time, and meet with a financial professional at least yearly to stay ahead of the taxman.
✔️Accounting System – It is a MUST that you use an accounting system and update your records on monthly. There are so many accounting systems out there that can help keep track of your expenses and revenues, generate financial reports, and help you run your business like a CFO.
✔️Invoicing and Payment – Although it might seem easier to invoice on your own, using a system will help you stay organized, track outstanding invoices, and analyze your sales and billing.
✔️Admin Organizer – Make sure you have a cheat sheet for your business with all key legal, admin, tax, and financial information. This will come in handy during tax time or when you get an admin request from the government! With the right financial foundation, you will have the groundwork to manage, grow, and scale your business.
Own your Finances each Week
The way to grow your business is by setting your financial goals and building a plan to achieve them.
Each week you will want to perform a review of your business to analyze your sales, spending, profit and impact.
Some of the key financial metrics you will want to know each week as a business owner are your cash flow position, your sales, your operating costs, and your gross margin and profit margin. You will also want to analyze your sales and marketing leads.
Make sure you have a process in place to analyze your financial performance and make changes when you need to.
Build your Profit Team
Entrepreneurship is not a solo journey, and neither are your finances!
As a business owner, you need to build your profit team, which includes a bookkeeper to keep track of the data in your books, a tax expert to help you manage the tax code, stay compliant, and file your taxes, and the profit builder, who is focused on your cash flow and profit.
Creating a profit system in your business will help you scale and focus on the things you love while making sure that your business is financially sound. No matter what type of business you are running, the goal is the same; make more money than you are spending.
Are you ready to build your profit strategy? Learn more about how the Startup Business Bootcamp can help you get your financial strategy and profit plan implemented after 4 weeks!