When I look at the statements for my bookkeeping company every month, I’m looking for several things: Did I make a profit? In a service business, you should pretty much expect to make a profit from the get go. What’s my gross margin*? For a service business, I like to see between 40-60%. Some business […]
The new workbook is posted under the members tab. Here is a synopsis. Your Profit & Loss tells you how much money you brought in, how much you paid for expenses and how much was left. Your Balance Sheet tells you what you have or own in the business and how you paid for it. […]
The term economics refers to the study of the movement of money at the population level. Economics looks at the aggregate of all the grocery shopping (for instance) by everyone and makes inferences and predictions based on how much, how often or how little we spend as a group. What does that have to do […]
Numbers tell the story of your business. They tell of struggle, triumph, of recessions, weather, shortages and realized opportunities. Numbers are a language – a very logical one and one without emotion. We don’t see an exuberant zero or an unhappy negative. They just are. We feel emotion when we see numbers because we think […]
Doing what you do is the most important decision you can make. You need to be working within that sweet spot at the intersection of your passion, your strength and what people value enough to pay for. Hugh MacLeod illustrates it perfectly here. Doing what you do starts with passion. You need to know what […]
PROFIT is our MOTIVE Originally uploaded by pheezy Which of your lines or products or services made you the most money this past year? This is important information to know. One of my clients has a retail shop. She did an analysis of her gross margin on the different lines she carries, and found […]
give Originally uploaded by Tim Green aka atoach It’s become fashionable to have a cause and to let people know that when they buy with you some of that money is going towards your pet cause. This just doesn’t sit right with me. If the contribution is coming from your profits, that’s your business. […]
Is there a sale on? @ Lowestoft, Suffolk Originally uploaded by timparkinson One of the main reasons a small business gets in financial trouble is their prices are too low. It’s tempting to price too low, especially in the beginning. That way you don’t have to compete on anything but price. Seems easy right? The […]
It’s not about films, it’s about content. Distribution includes compensation. Free may be the new price, but people are willing to pay for content that is timely, relevant and focused on their needs-of-the-moment. The trick is to find the content and distribution that will satisfy the people who want it and will pay for it. […]
Pond on the Water Meadows – Winchester Originally uploaded by neilalderney123 When people say to follow your passion and the money will follow, what exactly do they mean? I have friends who are passionate about their painting and living an organic lifestyle. They may not have much money, but they have a better life than […]
