the Know Your Numbers™️ Framework

The Know Your Numbers™️ Framework focuses on 4 key areas that together predict the success and sustainability of any business.

• Revenue

• Profit

• Expenses

• Cash

Revenue is the amount of sales and other income. It is cash flowing into the business.

Profit is the amount of sales and other income left after accounting for all expenses.

Expenses are the cost of goods or services sold plus the cost of operations. It is cash flowing out of the business.

Cash is money in the bank!

Side Note: We just sent financial reports to all of our clients this past week with these metrics outlined, because we know the focus continues to be on the numbers. While we might pivot in our approach, our practices remain - because good business practices are good business practices all the time.

Was your business ready for the pandemic?
Is your business ready for the economic predictions of a year-long recession?
Can your business survive, sustain, and grow during this time?

If you answered “no” or “I don’t know” to any of these questions, keep reading for what to do next.

Was your business ready for the pandemic?

A ready business is one that has a diverse mix of revenue streams - from services to products, both active and passive offers, at multiple price points. They serve a particular audience and meet their needs at all levels from caterpillar to butterfly.

Is your business ready for the economic predictions of a year-long recession?

Look in your bag, sis, because we’re talking about cash. Ideally, a ready business has months of cash on hand to cover operations, paying a team, paying taxes, and paying YOU. A ready business sees slow revenue months ahead and knows that its expenses are covered for at least 3 months. Why is three months the recommendation? It gives you time to pivot your approach to sales for more positive results, reduce your expenses to maintain your profit margins, and watch the market for changes.

Can your business survive, sustain, and grow during this time?

Margins matter. Ready businesses have a profit margin consistent or higher than their industry’s average. Are your expenses in alignment with the revenue you’re making? If they aren’t, you’ve got to go LEAN. Get rid of the non-essential expenses (overhead) and keep more of your revenue in the business. Why overwork yourself and your team to cover unnecessary expenses.

Are you ready to know your numbers? We can help!

Check out our Services page to view our packages and get 1:1 help with your business finances.