Boosting Your Agency Profitability Livestream Recap
Last week I had the opportunity to join Layne Both and The Project Booth with 9 other industry-leading business owners and experts for a livestream called Boosting your Agency Profitability. During this livestream roundtable we shared the best practices, systems and strategies that have helped ensure our businesses make US money. Being an entrepreneur is difficult, you know this! There are so many hidden fees we never even thought about such as operating expenses, product costs, taxes, marketing, and the dreaded legal mishaps. These conversations were designed to help you avoid putting your own capital/savings into your business.
That being said, in case you missed it I wanted to recap what I discussed because it’s something I wish I would have known when I was just starting my business ventures!
The Value of KPI’s
Now I’m sure you've heard of Key Performance Indicators, otherwise known as KPI’s. But what’s so important about them? KPI’s quite literally help you identify what is important. Everyone has their top 5 KPI’s, but not everyone’s are the same. You see, they are tailored to your business and what your specific goals are. Someone in, let's say, the tax industry, will not have the same top 5 as someone in the food blogging industry- they have different goals! The importance of identifying your KPI’s is they help keep your goals in front of you and help you make decisions that will benefit your company. Without understanding what you are looking for, how can you create effective marketing?
Do You Use Dashboards?
Dashboards are another important component in your business. This is one that I don't feel is talked about enough! There are numerous benefits that come with dashboards. The first being it is a great way to measure your success. It allows you to see trends over time and even gives you the tools to know when a problem is coming. If it can be measured, it can be tracked!
Cash Flow, Cash Flow, Cash Flow!
Cash flow is important in any business- and life in general. In order to be successful, you need to track your numbers. You need to know where you are in order to plan for the future and make the right decisions. Another important component that so many entrepreneurs don't do is take the time to understand your financial reports. Now, odds are, you didn’t start your business so you could be the head of your accounting department. I get it, not many people want to do that. This is a reason you would want to look into hiring a financial group, such as Pivot Business Group, to help with this aspect of your business so you don’t have to. Another piece of advice I give my clients is to know their burn rate. Know how much you are spending as a company each month. I promise you, it will benefit you in the long run. Make sure when you are tracking your numbers you are also looking 90 days ahead. Know what’s coming up, what expenses are on the horizon, and plan accordingly. This ensures there are no surprises that you could have avoided.
Why You Need A CFO
A CFO stands for a Chief Financial Officer, but you already knew that. But do you know what they do? A CFO tracks profit and cash flow, analyzes a company’s financial strengths and weaknesses, and proposes corrective actions. A CFO is beneficial to business owners because they essentially sit in the passenger seat of the car and help you achieve your goals!
I hope you gained some insight from my recap of what I talked about during the livestream. Be sure to follow me on social media where I post updates about my upcoming events and opportunities for entrepreneurs like you!
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