It’s your CFO day and you notice that your revenue to date is up to six figures!
That excitement is a little short-lived because you’re only seeing a small fraction of that total make it into your bank account. That six figure number shows you’re making it! Yet, you can’t help but wonder how you can actually start to see the impact of that growth.
Here’s your answer: go deeper with your numbers.
Right now, you probably know the basics. (Find out about the basic data you should be tracking here). You know the amount you’ve priced each of your services at, you know how many clients you have per month on average, and you have some idea of how much time it takes to deliver each service. (Read more about how to price for profit here). Those numbers are valuable and can inform your operations to a certain degree. Now that you’ve reached the 100K milestone, it’s time to step your game up sis!
The data you currently have collected is just the start. You know you need to go deeper with your numbers if you aren’t sure…
- Which services are and are not profitable
- Where you should spend your time
- How much each service costs to produce
- What expenses are necessary
- What expenses could be cut down
- What your gross profit margins are or should be
- How to organize your expenses
Once you start collecting data about these numbers, you can use it to level up your business even higher and get to your next financial goal. Numbers in your business work together and can be useful indicators of the health of your business. If you look at how your data interacts with each other, you can find ways to become more efficient and cost effective.
For instance, the service that is the most popular is generally the service where you’ll want to devote more of your time. However, if that service costs a lot to produce, it will have a lower gross profit margin and may not be worth investing in. (Read more about how these numbers help you turn a profit here).
Organizing your expenses will help you figure out what expenses are necessary and which ones you could possibly cut down or get rid of altogether.
As the go-getting entrepreneur I know you are, you won’t stop at six figures. You’re going to work to keep your business and your profits steadily growing. With my freebie, 3 Reasons Your Money Isn’t Adding Up, I’ll give you all the knowledge you need to successfully dig deeper into your numbers. Download that here.
