The Importance of Knowing Your Numbers

As a female entrepreneur, you probably started your business based on your passion. However, passion alone doesn’t guarantee profits.

Rather than flying by the seat of your pants, treat your business like a business by knowing your numbers and creating a profit plan. 

What can happen if you don’t know your numbers?

You can invest in things without understanding the R.O.I. (return on investment)

• Part of being an entrepreneur is experimentation, however, you need to collect and reflect on the data. Measuring the impact of your investment will guide you in future decisions.

• You can end up on a shoestring budget. 

• By studying the cash flow (money coming in and money going out) you’re able to time your owner draws and have enough money in the bank to cover incoming expenses.

• You can receive a shocking tax bill or a scary letter from the IRS.

• Be proactive, rather than reactive when it comes to sending in estimated tax payments and filing your taxes. 

• You can overspend; leaving less money in your pockets. 

• Without a plan, forecasting your financial future becomes difficult and dangerous.

Here are 3 steps to help you get there:

1. Have a clear plan: Write down your financial goals and the strategy behind each of them. 
2. Create obtainable revenue goals: Calculate the number of offers you need to sell and their price point. Do you have the capacity to sell and deliver? Are these SMART goals?
3. Seek accountability and guidance: Have a support system. 

If you want to stop winging it with your numbers, check out the Get Radical Profit Growth Accelerator! This is a membership program that is guaranteed to bring more CASH into your business, through Community, Accountability, Systems, and Help! https://getradicalprofitgrowthaccelerator.com/membership (see Caterina’s VIP bonuses to attend one month for free).