What does it take to build a successful, sustainable business?
The answer isn’t as simple as “more sales.”
The truth is that your revenue numbers, no matter how high, do not determine how profitable and successful your business is. Your revenue is only one part of your overall financial picture — and six- or seven-figure revenues mean very little if you aren’t actively working to control your costs. Unfortunately, high revenues can be easily negated if your costs are spiralling out of control. This means that your business can be unsuccessful even when you're pulling in record-breaking sales!
Your level of profit is your bottom line and this is the #1 most important number when it comes to determining the success of your business. Profit is determined not just by your sales, but by your expenses. Plugging all money leaks and keeping a steady eye on your cash flow is just as crucial as closing more deals if you want your business to last for the long haul.
Maintaining up-to-date records and reviewing your numbers regularly makes it a lot easier to stay on top of things and make necessary changes as they arise, whether it’s cancelling a recurring charge that no longer serves your business, or remembering to invoice or follow up with a client who hasn’t yet paid.
When working with clients as a CPA, I always recommend five key ways to boost a business’s profits aside from increasing revenues. I’m excited to be able to share them with you in my latest podcast episode!
“The reality is: what makes your business successful lies in the profit.”
- Melissa Houston
In this episode, we’ll explore:
Highlights:
Links:
https://www.preferredcfo.com/cash-flow-reason-small-businesses-fail/
The 5-Step Roadmap to Biz Finance Freedom
https://melissa-houston-cpa-cga.mykajabi.com/5-step-roadmap-to-biz-finance-freedom
Work with me
https://www.melissahoustoncpa.com/work-with-me
Want more tips and inspiration? Follow me on Twitter @melissahcpa and Pinterest @melissahoustoncpacga and visit my website: https://www.melissahoustoncpa.com.