Finances are a big part of every business. But as people start making more money, they naturally start spending more as well, just to find themselves wondering where all that additional income has gone and why they are still in the same place they were a year ago despite better performance on paper.
In today’s episode, Alexa D’Agostino sits down with Debbie Shannon to discuss the financial side of building a business. They provide some actionable steps you can take today to improve the financial health of your company and share some findings that have helped them save thousands of dollars and hundreds of hours.
Key parts of the conversation:
- [0:32] - Today’s Topic: How Financial Planning Will Help You Get To Millions
- [3:45] - Why financial planning is important
- [7:05] - How Alexa increases her profit margins
- [12:40] - Understanding your cash flow
- [15:39] - Why Alexa doesn’t pay herself a large salary
- [22:26] - Why it pays off to invest in a COO
Great quotes from the podcast:
- “The three ways to make more money are to get more sales, increase your prices, or fix your margins.” - Alexa
- “It is really important to understand your cash flow.” - Alexa
- “You want to be cash heavy; you want to have cash for emergencies.” - Alexa
- “Cash in small to midsize businesses is the number one predictor of success.” - Debbie
- “You need to look at what your net is, and make sure your operating income is solid.” - Debbie
- “Building a 7-figure business is not easy. But financial planning and strategy is critical.” - Alexa
- “You need to start planning; you have to start turning your business dreams into a reality by starting with your finances.” - Alexa
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