Ep 31 | Setting up your Business for Financial Success with Megan Fries
Marketing is one thing – but you can't be successful at it if you don't have the financials to support it. Let's chat about this.
2020 planning is in full swing. And while that means marketing planning, it also means ensuring your financials are set and you're ready to grow your business.
Megan Fries is joining me on this episode to talk about finances and what to consider as business owners.
Marketing is part of your business strategy and paying attention to the data is important. Where do you start?
Accuracy! Looking back at your reports and ensuring they're accurate and consistent.
Pay attention to cost of goods. What things would you pay for ONLY if you made a sale? What things are general business expenses that you have to pay for regardless. Then pay attention to the gross profit you're making so you know about what you actually get to keep.
A lot of people feel that numbers inhibit creativity…that's just not the case.
When you're paying attention to your numbers, you know what you have left to play within your business to help you grow. Consistency is so important because you know exactly where things are going and how you're spending your money. Then they give you more questions you can ask for the next thing to look into. What products/services are giving you the most money vs what might need to change.
Budgets are budgets, forecast!
Have your monthly budget. Each month take a look at what's coming up and how well did we do against our projections.
You don't know what is going to happen and what campaigns are going to work and what's not. Pay attention to trends and adjust based on what's actually happening in your business.
Budgeting can help you say no!
When you have a plan and goals for your business and you know where you're going it makes it easier to budget. You can now say no certain subscriptions, or courses, business coaches etc. And say yes to the things you want in your business and life.
Your relationships with your bookkeeper or your team is a partnership.
Don't just pass it off and let it go. You need to be involved in your finances and reviewing them on a regular basis.
How often should we be analyzing our numbers?
It always will go deeper and deeper as you keep moving forward and growing. Understanding your business can help you make pricing decisions as well as sales that you run.
Learn what things are going to help you grow your business because they make an amazing profit and what doesn't actually help you drive business.
Make sure you're also tracking time. Understanding where you're spending time is important. What do you spend your time on that could be better spent elsewhere?
What You'll Learn
(3:30) Who is Frenzy to Freedom?
(6:37) Pay attention to the data – but where do you start?
(11:45) Paying attention can help you with your creativity
(14:00) Budgets are budgets – forecast!
(16:33) Budgeting can help you say no!
(19:45) It's a partnership
(12:28) How often should people dive deep into their numbers?
(27:46) Profit Equation
Founder, Frenzy to Freedom