How to Increase Your Profit: The Importance of Knowing Your Numbers as a Business Owner with Dawn ApuanAug 09, 2021
In this episode of Profits + Prosecco Podcast, I am sharing an interview of myself by Dawn Apuan in her summit, 7 Steps to 7 Figures. Dawn Apaun is a copywriter who helps entrepreneurs sell even their most expensive offers with a high ticket funnel that brilliantly captures their voice and messaging to attract dream clients - without costing them time and energy creating it. In our conversation, we discuss the importance of knowing your numbers and knowing your profit as a business owner. For more details, stay tuned!
But before we dive right in, welcome to the Profits + Prosecco Podcast! I’m your host, Katie Ferro, CPA, reformed rule follower, creator of Booked Out Bookkeeper, mom to 3 little ones, and Kajabi enthusiast.
This podcast is for entrepreneurs who desire to change their life through their profitable business, and for bookkeepers and accountants who want to escape the 9-5 and start a simple scalable bookkeeping business like I did.
Bookkeeping increases profits and profits change lives. So pop some bubbles and let me show you how!
In this episode, we’ll be talking all about increasing your profit and knowing your numbers. For even more juicy details, listen to ALL of episode 36 of the Profits + Prosecco Podcast on your fave streaming platform.
How sales correlate with profit.
This is 100% unique to every business.
A lot of people talk about numbers in their business but they don't really talk about the numbers that matter. Of course, sales are important but profit is the thing that actually matters.
Sales tell you nothing about a business, it is the profit that's going to tell you how sustainable it is and how successful it is. I see a lot of people hit "six or seven figures" but they aren't looking at what they're taking home.
As a business owner, you have to know the whole picture. If you're not profiting off one client, you're not going to profit off 10, you're just going to lose more money. Having more clients means that you have less time and less money.
Overall, your model has to be profitable, scalable, and measurable.
Increasing profit by making adjustments.
In my conversation with Dawn, I emphasized that I am constantly checking in on how, when, and what is next. I look at what's working and what's not and make adjustments based on that.
The same thing goes for your expenses…
You want to group them by category and look at them every month. Depending on who you are, you might need to do it more often. When you're constantly looking at your numbers, you're able to rapidly adjust and track everything you need to track.
You have to see where your money is going and how much you’re spending on expenses. What I recommend doing is creating categories, scanning your account, and putting those numbers into categories. This way, you see where your highest dollar is and where you need to make a change.
This will help you with your decision-making on what you need to adjust in your own business to create more profit.
Removing an item of income.
Removing an item of income can seem SUPER scary but let me tell you something…
I will never give up bookkeeping because I get to see the backside of businesses that a lot of people don’t talk about. With one of my clients right now, we're working on removing a source of income but we want to double that source of income first before letting it go.
The biggest expense in your business can actually be a source of income because it prevents you from selling. If you could remove that, you could probably make 5x more.
When you know your numbers, you won't be scared to let go of a source of income to potentially increase your overall income.
Knowing what you're worth.
Newsflash: There are people out there who are willing to pay you the right amount of money.
They just need you to present it in the right way because they don’t want a small offer, they want it done for them.
If you do more for less, you're able to achieve more of a transformation, work with fewer people, and clear up a lot of your administrative tasks (which allows you to show up better anyways).
When it comes to pricing, you shouldn't push anyone into paying a certain price. When they're comfortable, they will take the leap but other than that, you can't stop yourself from raising your prices. If you think your service is worth $100 more because you're putting in a lot more effort than you were before, then don’t be scared to raise that price.
The right people that were made for you will be willing to pay for your services and products.
How to Increase Your Profit: The Importance of Knowing Your Numbers as a Business Owner with Dawn Apuan: The Bottomline
I hope this episode helps you understand your numbers better and get clear on what your profit is. There are strategic ways to increase your profit if you're intentional about your money. I hope this conversation with Dawn helped you see the bigger picture on what adjustment needs to be made in your business.
If you enjoyed the episode, please take a second to rate and review. Each review helps us reach and inspire more entrepreneurs and bookkeepers just like you.
Don’t forget to take a screenshot, share it in your Instagram stories, and tag me at @orderlyaccountingbykatie. Cheers to your inevitable success and I’ll see you in the next episode!