Are you BFFs with your business finances or would you rather hang out with Voldemort than think about money?
The stories you have around money could be limiting your earning capacity so it’s kinda important to understand your numbers so you can create more money magic in your business.
Today’s guest on the How I Do Content Podcast is to share her favourite strategies for Boosting Business Profit! Listen to the full episode now or scroll down for the highlights in the too long;didn’t listen (TL;DL) version below.
Let me officially introduce you to Clare Wood – Money Mentor
Clare is a self-confessed numbers nerd, author, speaker, and podcaster. She’s an ex-CPA accountant, but she’s not your average bean counter – she uses her money-making mentoring powers for good and supports service-based businesses to scale while creating a lifestyle they love.
She runs The Profit Academy, an online school created to help business owners increase their profits exponentially.
In today’s episode, Clare shares some practical strategies for boosting business profit to help you get comfortable + confident with your numbers and why transforming your relationship with money will help you increase the amount of profit you can earn.
Let’s create some money magic!
Things You’ll Learn in This Episode of How I Do Content
- The numbers you need to know as a business owner
- How you can start feeling more confident about your money TODAY
- Clare’s favourite strategies for Boosting Business Profit in your business in 2023
TL;DL version: Mindset, forecasting cash flow and how to make more money in your business.
Remember; social media doesn’t always give us the truth about business finances.
We’ve all seen posts with business owners sharing their 5/6/7 figure days/months/years.
Understand that when you see someone sharing sales figures like these, it isn’t always a reflection of their gross profit or how long it really took them. For example, some launches can make >$100K but be 9 months in the making. Someone can claim to have a million-dollar business, but be in their 6th year of operation… Context around sales numbers matters.
Don’t buy into everything you see online.
Learn how to detach yourself from how much money other business owners are (seemingly) making. At the end of the day, what someone else makes isn’t important to you because they aren’t you. Stop comparing yourself to other people. The only person you’ll benefit from comparing yourself to is YOU.
4 impactful ways to boost your business profit in 2023
1. Learn to master your money mindset.
If you want to create any significant change in your life, you need to be willing to peel back the layers and understand where your beliefs and stories have come from.
The way we were brought up, and the experiences we have had in life all shape our present-day money mindset. For example; if we’ve been raised in a lacking/scarcity environment when it comes to money this can lead us to be fearful of investing or spending money. On the flip side, some people may swing the other way in this situation and want to splash out all the time, because they never were able to do that in the past. Uncovering and understanding why we hold the beliefs and stories we do around money helps us to then rewrite those beliefs and stories to make meaningful changes.
2. Educate yourself in accounting and finance.
Learn about profitability, understand accounting terminology, and do a deep dive into your figures. And don’t worry, business accounting can feel overwhelming at the best of times – Clare spent 6 years studying accounting and still experiences many WTF moments. It can feel tricky but don’t let this stop you from getting a grip on your business numbers.
Often, business owners think that when they grow their business to X amount, then they’ll learn more about their accounting and bookkeeping. The problem with this is that it’s only going to get more challenging as your business grows. Bigger income brings bigger responsibilities like whopping tax debts, wages, and high-ticket investments. If you haven’t got a handle on your basics from the beginning, you’re going to find it even harder when the stakes are higher.
3. Review your expenditure.
Review your expenses and have a good, hard look at the things that could be sabotaging your profits. A really common, unnecessary expense that a lot of business owners are guilty of is oversubscription. So often we have subscriptions on auto-renew that we don’t even use, or we really don’t need. Cancel them, pronto!
Reducing credit lines and overspending is an impactful way to increase profit. There should be a balance between investment and profit – i.e. is it worth it?
Being a tight ass will restrict your business growth, too.
If you’re wanting significant growth without wanting to spend a cent, you’re going to run into trouble. Business growth requires resources – especially if you have grand plans for scaling. You’ll need support from things like coaching, system upgrades, and extra team members. Without investment in these areas, your business profits will eventually plateau.
4. Forecast your cash flow.
The secret to making sure your bank balance is where you want it to be lies in forecasting cash flow – not focusing only on profit.
Cash flow is not the same thing as profit.
Profit is looking at sales vs. expenses etc. whereas cash flow is looking ahead and projecting future income. When you forecast, it’s easier to be more strategic and simply tweak things along the way.
Getting on top of your business finances is much like learning how to create magical content.
It gets easier the more you do it. Take the pressure off having to make everything perfect the first time. Taking imperfect action is always going to serve you more than taking no action at all.