Master Your Business Finances: A Five-Step Guide for SuccessFeb 06, 2024
Here are five steps to get your business on track to be more profitable.
New clients just about always want to know how to get more profitable—I can help for sure! Today, let's talk about a topic that's critical yet often daunting for many business owners: financial management. I'm here to simplify it for you, breaking it down into manageable steps that will lead to increased profitability.
If you don’t know who I am, I’m Scott Miller, the owner of thegrowthleague.com. I help restoration business owners boost their profitability, cut down the chaos, and build a valuable business they can one day sell for a significant amount. Want to delve deeper into how I assist my clients? Feel free to book a call with me using the link below this video.
Reflecting on the article I wrote, What’s Holding you Back from Getting Your Financial House in Order for Cleaning and Restoration Magazine, invited by Michelle Blevins, was a good reminder for me that financial management can seem overwhelming. So let’s make it less intimidating and more approachable.
Before I give you some simple tips and an invitation to take me up on my offer of a call to help you step into action, I’ve got a quick story for you. Are you familiar with John C. Maxwell? If not, go on YouTube and Google him. He’s got some incredible material on the topics of leadership and teamwork. He tells the story of a young man who came up to him after a speaking engagement and said, John, I want to do what you do, and John responded with something like this: Are you willing to do what I did to get to do the things that I do? Why do I tell that story? You CAN get more profitable but you need to do certain things. My aim is to get you to believe that it’s not as difficult to do as you might think. If I can do it, you can do it. Think about these three ideas to help you get started.
1. Understanding the Ripple Effect: A lack of financial understanding isn't just about numbers – it affects your entire business. If you don't evolve, you risk constant worry about finances, missed income opportunities for you and your team, and a business that's undervalued. Remember, your business's worth isn't just tied to revenue . . . Profitability is the real game-changer - think “net benefit to owner” or “EBITDA” as the primary business value drivers.
2. Breaking Down Financial Management: Let's simplify this. Here are small steps to big changes:
- Start with Financial Literacy: Learn the basics. It's about understanding, not mastering.
- Use the Right Tools: Tools like QuickBooks and CRM platforms can simplify financial tracking.
- Reevaluate Your Payroll System: Small tweaks in your payroll process can lead to significant improvements in your ability to reduce job cost.
- Smart Budgeting: Develop budgets for your projects – before they begin (mitigation and reconstruction).
- Build Consistency: Regular routines in financial management bring stability and growth and increased profitability.
- Take Ownership: As the owner of your business, you’ve got to Own your business's financial health. It's a critical aspect of your leadership.
3. Your Roadmap to Financial Clarity: If you're feeling overwhelmed, don't worry. I've developed a financial assessment tool which doubles as a roadmap to help you get more profitable.
Interested in taking action? Send me an email, and I’ll share the financial roadmap with you. Better yet, book a free call by clicking the button below this video, and I'll walk you through the document and how to use it.
Change, especially in areas outside your comfort zone, doesn't happen overnight. But the journey is worth it. Your financial clarity will not only increase your current profitability but also significantly increase the value of your business over time – you’ll be happy you invested the time and energy into this when it's time to sell.
If you’re ready to take control of your business’s financial future, click the link below and let's start a conversation. Together, we can turn your financial apprehension into financial success.
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