Podcast Episode #60
Understanding the financial side of business is important. When equipped with enough knowledge, one would be saved from running a business blindfolded and doom looped. The key concept of the system is to change the mindset of growing your business and convert it into growing your profit and cashflow.
Dawn Fotopulos is the associate professor of business at The King’s College, the founder of BestSmallBizHelp.com and author of Accounting for the Numberphobic: A Survival Guide for Small Business Owners (AMACOM). As an experienced entrepreneur and small-business turnaround expert, she has rescued hundreds of small businesses from financial disaster. She has been featured on MSNBC’s Your Business and at the New York Times Small Business Summit.
Step 1: Review your financial dashboard.
Step 2: Focus on gross margin, not on revenues.
Step 3: Increase your gross margin by increasing your prices.
Step 4: Increase your gross margin by eliminating unprofitable products and services.
Step 5: Increasing growth margin by identifying profitability by the client.