Money and finances can be daunting for any business owner. Poring over spreadsheets, analyzing cash flow, and trying to make sense of financial jargon can make anyone’s head spin.
But the truth is, understanding your business finances is crucial to your company’s success. That’s why conducting a financial health check is essential.
In this episode, I share the key lessons I learned from the interview with Gavin Smith, which you can check out in episode 63: Financial Health Check – Understanding Your Business Finances with Gavin Smith. During our conversation, Gavin shared invaluable insights into how entrepreneurs can better manage their finances, avoid common pitfalls, and stay on top of their financial game.
A financial health check assesses your business’s financial performance and stability. It involves analyzing your company’s financial statements, cash flow, expenses, and revenue to better understand your financial position.
By regularly reviewing your finances, you can identify trends, spot potential problems early on, and take proactive steps to improve your financial performance.
If you’re ready to take control of your business finances and set yourself up for success, grab a notebook as I dive into the key takeaways from my conversation with Gavin Smith.
IN THIS EPISODE, YOU’LL FIND OUT…
- The importance of knowing your numbers (01:25)
- How to simplify your profit and loss into five categories (03:35)
- Looking at the percentages vs. looking at the dollars (04:45)
- How often should you do a cash flow forecast? (05:50)
- Finding business partners that fill the gaps (07:52)
- The power of understanding your strengths (09:08)
QUOTES
“Using your numbers is about knowing what’s going to happen.” -Carl Taylor
“Knowing your numbers is retrospective.” -Carl Taylor
“Doing a cash flow forecast weekly will help you understand the highs and lows of your different cycles.” -Carl Taylor
RESOURCES
ER Episode 63: Financial Health Check – Understanding Your Business Finances with Gavin Smith
WHERE YOU CAN FIND CARL TAYLOR
Automation Agency
CarlTaylor.com.au
LinkedIn
Facebook
Twitter
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.