138 - Keeping An Eye Out For Financial Indicators
We can all agree that at one point or another your finances as a business owner has been difficult to navigate. It’s not always easy, but today Martin and Khalil talk about understanding the finances of your business and what you should focus on within this area. It’s something you don’t want to miss. Listen today.
Show Notes
02:44 - What Are Roller Coaster Profits
06:16 - The One Objective Of Business
12:15 - What Are Margins?
15:47 - What Impacts Margins The Most?
22:39 - Do You Know Where You Break Even?
24:50 - The Difference Between Target Profit And Target Sales
28:50 - You Make Money, But You Don’t Have Any . . .
35:39 - Inventory Terms And Supply Chain Issues
39:10 - Delayed Gratification
42:45 - What’re The Signs Of Bad Books?
48:32 - Integration Into Your Techstack
Quotable Moments
“It's so important for people to realize that it's a target profit and not target sales. When you have a target sales, that's what leads you to do things like discount.” - Khalil
“The smarter bidders out there are including some of these things like there might be weather delays. There might be issues with material orders where I still have to pay my guys, but I don't have the materials to do the job. You've gotta keep in mind when you're bidding.” - Khalil
“The number one thing to follow is your margins because it tells you what your break-even is.” - Martin
“It's sales that bring margins and the margins have to be sufficient to pay your overhead expenses.
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