Managing your business finances is an essential task that every entrepreneur must undertake. As a business owner, you need to clearly understand your financial situation to make informed decisions about your operations, growth strategies, and investments.
However, many entrepreneurs need help with financial management and may need help knowing where to start. That’s where a financial health check can be valuable. A financial health check assesses your business finances and evaluates your income, expenses, cash flow, profitability, and other key financial indicators.
In this episode, I’ve invited Gavin Smith, the founder and CEO of The Profit Analyst, to discuss the importance of doing a financial health check.
Gavin shares his expertise on how entrepreneurs can improve their financial literacy and take control of their finances. He also discusses common financial challenges small business owners face and provides practical tips to overcome them.
Whether you are a seasoned business owner or just starting, this episode will provide valuable insights and strategies to help you better manage your business finances to achieve financial success.
IN THIS EPISODE, YOU’LL FIND OUT…
- Knowing your numbers vs. using your numbers (03:40)
- How to become more accurate in forecasting your numbers (05:14)
- The process of simplifying your numbers (09:34)
- The four-step profit formula and why it’s important (13:42)
- The power of knowing your numbers (15:18)
- How to identify your business drivers (17:57)
- Five key numbers every business owner needs to understand (20:15)
- The finance ecosystem and its three distinct areas (25:00)
- The importance of understanding your cash flow (28:11)
- How to make your numbers easier to look at (33:09)
- How to build wealth through your business (36:30)
- The profit calculator and how it can help you (42:32)
- The value of profit first (50:48)
QUOTES
“If revenue is doubling, your team is probably going to double as well.” -Gavin Smith
“Sometimes restricting expenses is not growing your business.” -Carl Taylor
“There’s a huge opportunity for lots of business owners to become empowered from their numbers.” -Gavin Smith
Get In Touch With Gavin Smith
Website: www.theprofitanalyst.com
Facebook: https://web.facebook.com/theprofitanalyst/
Instagram: https://www.instagram.com/theprofitanalyst/
ABOUT GAVIN SMITH
Prior to founding The Profit Analyst, one of the leading financial coaching businesses in Australia, Gavin had been a CFO for various international brands, a commercial analyst and a Chartered Accountant at KPMG. He now owns multiple businesses, and has a passion for empowering other business owners through their numbers.
Like this episode? Have topics that you would like us to discuss? We’d love to hear your feedback and comments. Let us know by leaving a comment below.