#16 Expense VS Investment when rapidly growing your business
This conversation NEEDS to happen, [continued on from episode 15]
Financial empowerment in business is knowing your numbers.
How can you make high-quality business desicions if you don’t know your numbers?
Not understanding your numbers or creating security within your cashflow is one of the reasons businesses fail
We didn’t get into business because we love numbers - although I love numbers haha
But not all of us started business because of that, we love what we do, we love how we make people feel, we love being creative…
… for a lot of us, numbers isn’t our strength - nor do we feel confident or comfortable talking about money
Expenses: The cost of doing business, that contributes to you being able to generate revenue
- Products
- Accountant
- Fuel
- Insurance
- Canva
- Dubsado
Investments: The cost of assets within your business, that generates MORE revenue than the initial cost.
- Staff
- Website
- Business Education and Strategy
- Paid Advertising
- Social Media Strategy
START to know your numbers intimately, and consistently.
GET EXCITED about your revenue and your 12 month forecast of potentiality.
START paying yourself a worthy wage as a PRIORITY and make sure it’s MORE than minimum wage, too.
START getting comfortable with your operating expenses. They exist. They aren’t going anywhere.
CELEBRATE your taxes. And forget the advice you’ve been given about keeping your revenue below $75k - what a limited way to live in scarcity of paying taxes. Your taxes are the perfect rep of your business growth - so start celebrating!
Understanding your numbers helps you to make EPIC business growth decisions and ultimately, your investments won’t *feel* scary AF - because you GET. IT.
Because… TRUTHBOMB. Growing your business IS an investment.
Your systems.
Your team.
Your training.
Your marketing.
All investments that lead to MORE revenue.
KEY HIGHLIGHTS
[00:00:00] The Importance of Financial Understanding in the Bridal and Beauty Industry
[00:00:47] The Impact of Knowing Your Business Numbers on Quality Decision Making
[00:01:41] Personal Experience and Challenges with Business Financial Management
[00:04:17] The Unique Financial Security in the Bridal Industry
[00:07:32] Understanding the Difference Between Business Expenses and Investments.
[00:15:08] Importance of understanding your business financials, specifically looking at the returns on investments such as paid advertising.
[00:16:26] The necessity of understanding baseline expenses for making informed investment decisions and forecasting business growth.
[00:17:14] The emphasis on knowing your numbers to make high quality decisions leading to business growth.
[00:18:04] Encouragement to pay yourself a fair wage, understand operating expenses and celebrate business expenses, including taxes.
[00:20:17] Introduction to the program 'Money Magnetism' aimed at shifting into CEO strategies, wealth energetics, and creating a new mindset for business growth.
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