Business Growth by Numbers

Which product or service makes you the most money in your business?

business money products and services profit Jan 27, 2021

Which product or service makes you the most money in your business? Do you even know this?

If you have lots and lots of products and services in your business, you need to really think about focusing that down, and knowing which ones really make you money. But do you know how much money they each make?

If you offer one to one consultancy, is that actually worth doing? If you do a course, is that worth doing?

I want you to think about how which products and services in your business make the most money. And then you can make some conscious decisions about the best way to manage your business.

Revenue information

Start by looking at the split of your revenue. Look at your revenue for the last 12 months ideally, but whatever you can pull out. Look at how much you made from each of your products, how much time they took you take you to deliver each time.

Let's say you have one to one consultancy. Look at how much one to one time you actually spent and how much revenue you...

Do you know what the breakeven position is in your business?

breakeven expenses loss profit sales Jun 23, 2020

Do you know what the breakeven position is in your business? Do you even know what that is?

If you don’t know (and it’s totally ok if you don’t), breakeven is when your sales and costs are the same ie zero profit. This is taken after tax to ensure this doesn’t get forgotten.

Start with working out your fixed costs. These are the items that, if you didn’t have any income, would still exist. This might be your website, insurance, accounting costs, employees, office space costs, tech (G suite, zoom etc) or manufacturing costs. Also, anything that you are paying on a payment plan to ease the payments. Anything that you can’t just turn off if your business stopped for a period.

Then look at the variable costs. This could include paying yourself although I think you should be aiming for a minimum fixed cost each month to pay yourself. So put in how much you need to live in this...

Cash Management

money money management profit tax Jan 21, 2020

Have you heard the expression “Revenue is vanity, profit is sanity, but cash is king”.

It’s a phrase used a lot in the accounting world and one that holds true almost all of the time. If you don’t manage your cash you will not have a business. “6 figure” sums are always talking about revenue and are amazing but you have no idea if they have 6 figure costs at all or are turning a profit. You also have to run the business you have, not the one you want, to ensure your costs don’t run away with you.

You must also be careful not to manage just your actual bank balance all of the time, as this includes amounts due for tax, payroll, supplier payments. It also does not account for invoices that your customers have not paid you for yet.

Managing your business on a cash basis for day-to-day practical management of your business numbers is a perfectly good way to do things. However, you must always make...

Which product or service makes you the most money in your business?

Do you know what the breakeven position is in your business?

Cash Management

Before you go...

Two Step