November Round Up!

Happy Thanksgiving! 🦃

As we wrap up November, let's take a moment to reflect on our business journey and express gratitude for our perseverance. Remember, it's the small things that count! Here's a quick recap of this month's insights to help propel your business forward:

Business Growth Highlights

Financial Health Check: We explored why assessing finances is crucial for every business.

Scaling Strategies: We delved into 5 essential steps to grow your business smartly.

Gratitude and Self-Care

Today, as you celebrate:

1. Thank yourself for your daily commitment to your business

2. Reflect on what you're grateful for, big or small

3. Savor the delicious food and create joyful memories

Let's gear up to finish strong as we approach the year's end. Take this time to recharge, and get ready to tackle the final stretch with renewed energy and focus.

Wishing you a wonderful Thanksgiving filled with warmth, gratitude, and inspiration for your continued success!

Keep IT Sunny~

Scale Smart: 5 Essential Steps to Grow Your Business

As a solopreneur running a business can get challenging fast as you grow. Scaling your business requires strategic planning to ensure sustainable growth. Here are five essential steps to scale effectively:

1. Build a Strong Foundation

• Optimize Operations: Streamline processes and adopt new technologies to enhance efficiency.

• Hire a Robust Team: Employ skilled individuals who align with your company’s goals.

• Set Clear Goals: Establish SMART goals to guide your scaling efforts.

2. Leverage Technology

• Automate Tasks: Use software to automate repetitive tasks.

• Enhance Customer Experience: Implement CRM systems for better customer insights.

• Utilize Data Analytics: Analyze data to inform decision-making.

3. Expand Market Reach

• Enter New Markets: Explore new geographic or demographic segments.

• Diversify Offerings: Introduce complementary products or services.

• Boost Marketing Efforts: Invest in digital marketing for increased visibility.

4. Secure Funding

• Venture Capital: Seek investment from venture capitalists.

• Crowdfunding: Use platforms like Kickstarter for fundraising.

• Loans and Grants: Explore traditional financing options.

5. Focus on Customer Retention

• Deliver Exceptional Service: Build loyalty through excellent customer service.

• Implement Loyalty Programs: Reward repeat customers with incentives.

• Solicit Feedback: Use customer feedback to improve and address issues.

Following these strategies can scale your business sustainably and strategically, ensuring long-term success.

Keep IT Sunny~

The Financial Health Check: Why Every Business Needs to Assess Its Finances

I went to a doctor's appointment yesterday to follow up on my annual visit. I learned that there are a few things that I need to fine-tune to ensure that I stay in tip-top shape. As I walked away I thought it was a good idea that I have insurance and use it to go get annual checkups so that I can be informed about what’s happening in my body.

So many times it seems people just drop dead out of the blue sky but it might be that they were not aware of things happening inside of their bodies because they didn’t feel sick. In the same way as business owners, we need to stay vigilant about the financial health of our business. Things might look okay from the outside but unless you are actively engaged with your finances you won’t know for sure. 

The Importance of Assessing Your Business Financial Health

Regularly assessing your business's financial health is vital for ensuring long-term success. Here are the key benefits of conducting a financial health assessment:

1. Enhanced Decision-Making

A clear understanding of your financial situation enables better decision-making. By analyzing financial statements and key performance indicators, you can:

• Identify trends and potential issues early

• Allocate resources effectively

• Make informed choices about investments and cost management

2. Improved Cash Flow Management

Effective cash flow management is essential for business sustainability. A financial assessment helps you:

• Analyze accounts receivable and payable cycles

• Forecast future cash needs

• Develop strategies to improve liquidity

3. Better Risk Management

Understanding your financial position allows you to identify and mitigate risks. Through assessments, you can:

• Evaluate debt levels and overall financial stability

• Identify dependencies on specific customers or suppliers

• Create contingency plans for potential downturns

4. Increased Credibility with Stakeholders

A solid grasp of your financial health enhances credibility with stakeholders, including:

• Investors, who seek confidence in your operations

• Lenders, who prefer businesses with transparent finances

• Suppliers and customers, who may evaluate your stability before engaging

5. Operational Efficiency

Financial assessments can uncover areas for operational improvements. By analyzing data, you can:

• Identify unnecessary expenditures

• Optimize pricing and inventory management

• Streamline processes to enhance profitability

6. Strategic Planning and Goal Setting

Regular assessments facilitate effective strategic planning by enabling you to:

• Set realistic financial goals

• Align objectives with your overall business vision

• Track progress and adjust strategies as needed

7. Early Problem Detection

Monitoring key financial indicators acts as an early warning system, allowing you to:

• Detect declining profitability or inefficiencies

• Address challenges before they escalate

Assessing your business's financial health is crucial for informed decision-making, effective risk management, and sustainable growth. Make it a regular practice to ensure your business remains competitive and resilient in a dynamic market. Print out this list and review it often.

Keep IT Sunny~

Welcome To November

The holiday season is officially upon us! I can already see the Christmas and Black Friday commercials popping up on TV and flooding my inbox.

Here we go!

As we dive into the joyous celebrations of Thanksgiving, Christmas, and whatever holiday traditions you cherish, I want to focus on two important topics this month:

1. Assessing Your Financial Health: Now is the perfect time to take a close look at your business's financial status by reviewing your financial reports. Understanding where you stand financially will help you make informed decisions as we move into the new year.

2. Top 5 Strategies for Scaling Your Business: To ensure sustainable growth, I’ll share the five essential steps you need to take to scale your business effectively.

So, sit back, relax, and indulge in all the delicious holiday treats. We can worry about our waistlines after the festivities are over

Keep IT Sunny~

October Roundup!

Happy Halloween!

Just a friendly reminder that Halloween is here! I hope you’re ready to have some fun in your favorite costume. It’s hard to believe that October is coming to a close. This month felt like it had its moments, but now it’s time to reflect—did you manage to check everything off your to-do list?

Supporting Your Entrepreneurial Journey

As you celebrate today, I want to help you thrive on your entrepreneurial path. Throughout October, I focused on the importance of habits, particularly how negative ones can hinder your progress toward your goals. I also explored the benefits of having an accountability partner and how automation tools can streamline your business operations. While you're enjoying the evening and handing out treats to the little ghouls and goblins at your door, take a moment to check out those posts.

My aim is to ensure that financial concerns don’t haunt you on your journey to becoming the successful entrepreneur you aspire to be!

Keep IT Sunny~

Automation Tools You Can Use To Get Stuff Done In Your Business!

We all know that technology is taking over our lives. From artificial intelligence tools like Chat GPT to the latest apps out there. As a busy business owner it can get overwhelming to keep up with what is happening and how it can help you to bring calm to your chaotic business life. I want to quickly share a few tools in specific categories that can help you manage your business and make life easier.

Task Management Tools

• Examples: Trello, Asana

• Benefits: Streamlining project management and team collaboration.

Content Creation Tools

• Examples: CopyAI, Content at Scale

• Benefits: Automating content generation and enhancing creativity.

Social Media Automation Tools

• Examples: Hootsuite, Buffer

• Benefits: Scheduling posts and analyzing social media performance.

Email Marketing Automation

• Examples: Mailchimp, ActiveCampaign

• Benefits: Managing campaigns and segmenting audiences automatically.

Life can get hectic as a business owner. Time is money. It is crucial that you have the right automation tools at your disposal to optimize your time. I hope that you will check out the tools I have shared with you to make your life easier.

Keep IT Sunny~

Double the Effort, Double the Success: The Power of Accountability Partners

In the competitive world of business, staying motivated can be tough. Enter accountability partners—your allies in achieving your goals. Research shows that individuals are 65% more likely to meet their goals when they commit to another person, and that number skyrockets to 95% with scheduled check-ins!

What is an Accountability Partner?

An accountability partner is someone who helps you stay committed to your objectives. This could be a peer, mentor, or coach who is genuinely invested in your success. I have 4 accountability partners within my bookkeeping mastermind group and it has proven very effective to help me achieve my goals.

Benefits of Having an Accountability Partner

1. Increased Motivation: Knowing someone is counting on you boosts your drive.

2. Enhanced Goal Setting: They help you define clear, actionable goals using the SMART framework.

3. Constructive Feedback: An outside perspective can refine your strategies and highlight blind spots.

4. Support and Encouragement: They provide emotional support during challenging times, making the journey less lonely.

Finding the Right Partner

Look for someone who shares similar goals and is reliable. Networking events, professional organizations, or online platforms can be great places to find potential partners.

Best Practices for Success

• Set Clear Expectations: Define roles and check-in frequency.

• Be Honest: Share both successes and struggles.

• Follow Through: Honor your commitments.

• Celebrate Wins: Acknowledge achievements together.

Overcoming Challenges

If misalignment occurs or commitment wanes, communicate openly and adjust as needed. If necessary, seek a new partner who better fits your goals.

An accountability partner or partners can significantly enhance your chances of business success. By doubling your effort through shared commitment and support, you set yourself up for greater achievements.

Are you ready to find your accountability partner? Share your experiences in the comments or start your search today!

Keep IT Sunny!

Are Your Habits Stopping You From Achieving Your Greatness?

We all admire certain celebrities and influencers who have achieved money, and fame and living their best lives. What about successful entrepreneurs like Mark Cuban, Oprah Winfrey, and the list goes on.

Our own entrepreneurial story can be a successful one if we know the right habits to adopt to create the positive outcomes we want in our business. How can we do that you might be asking yourself? It’s easy - just learn and follow what other successful entrepreneurs do. Here are some tips to help you on your journey:

Key Habits of Successful Entrepreneurs

1. Goal Setting and Planning

Successful entrepreneurs begin with a clear vision and set specific, achievable goals. They create detailed plans that outline the steps necessary to reach these goals, which helps them maintain focus and motivation over time.

2. Continuous Learning

A commitment to lifelong learning is crucial. Entrepreneurs often engage in reading, attending workshops, and seeking mentorship to stay informed about industry trends and improve their skills. This habit not only keeps them relevant but also inspires innovation.

3. Calculated Risk-Taking

Entrepreneurship inherently involves risk. Successful entrepreneurs assess potential risks and rewards carefully before making decisions, understanding that failure can be a stepping stone to success. This balanced approach allows them to navigate uncertainties effectively.

4. Networking

Building strong relationships is vital for entrepreneurial success. Entrepreneurs invest time in cultivating networks with peers, mentors, and industry leaders, which can lead to valuable opportunities and insights.They understand that collaboration often leads to innovation.

5. Discipline and Perseverance

Discipline in work habits and the ability to persevere through challenges are hallmarks of successful entrepreneurs. They prioritize their tasks effectively and remain committed to their long-term vision despite setbacks.

6. Adaptability

The business landscape is constantly evolving, and successful entrepreneurs are flexible in adapting to changes. They embrace new ideas and are willing to pivot their strategies when necessary, ensuring they remain competitive.

7. Effective Time Management

Time is a precious resource for entrepreneurs. They practice effective time management by prioritizing high-value tasks, delegating when possible, and maintaining structured daily routines. This efficiency allows them to focus on what truly matters for their business growth.

8. Prioritizing Health and Well-being

Many successful entrepreneurs recognize the importance of physical health for mental clarity and productivity. Regular exercise, balanced nutrition, and adequate rest are integral parts of their routines. Some also incorporate mindfulness practices like meditation to manage stress.

9. Regular Reflection

Taking time for reflection enables entrepreneurs to evaluate their progress and learn from their experiences. This practice fosters self-awareness and can lead to better decision-making in the future.

10. Listening Skills

Effective listening is often overlooked but is crucial for successful entrepreneurship. By listening actively to others, entrepreneurs can gain valuable insights, foster better relationships, and make more informed decisions.

Adopting these habits can significantly enhance an entrepreneur's chances of success. By setting clear goals, committing to continuous learning, managing time effectively, and prioritizing health, aspiring entrepreneurs can build a solid foundation for their ventures. The journey may be challenging, but with the right habits in place, success becomes much more attainable. Your name will be written down right next to other successful entrepreneurs.

Keep IT Sunny~

Welcome To October

Success starts in our minds.

Over this past weekend, the church I attend had a community-wide outreach to people who live in economically challenged areas. We gave out groceries, a hot breakfast, and toiletries along with social service resources to them. It was called the motel outreach and we went to a local motel and knocked on their doors to give them little bags of toiletries and resources aka hope. We asked their names and began chatting with them about their life. We asked them if we could pray for them about anything and many times people said yes, can you pray for my finances.

I would say 9 times out of 10 this was the prayer request.

We prayed for them right then and there. As I drove away after we were done and took a snapshot of what I just participated in and looked at the motel a little dilapidated but not much. I saw someone had put beautiful plants outside their door to spruce up the place. Meanwhile, others left their areas not as well kept. I turned to my right and saw something shocking: a whole area in the flood zone where people were living in tents. I then turned and looked across the street and saw very nice condos or apartments and thought:

What is going on here?

Why do we have such disparities in this city?

One thing cropped into my thoughts: Mindset

If you have no hope, life has just beat it out of you then your life will start to take shape as a result. This is clearly what happened to my fellow neighbors. 

Are you thinking with a success mindset?

Many times I will run across business owners who are so busy that their business is falling apart. I offer suggestions for resources that could help them get back on track like using the services of a virtual assistant professional. They never act on my suggestions. Instead, they continue to slug through their business doing the same thing and things slowly start to fall apart. It usually takes some kind of “crisis” to momentarily snap them out of it and spur action to take place. 

This month I want to take a look at what are the actionable steps to take to move from a “stuck” mindset to a “success” mindset. Do you have an accountability partner (s) to help you get stuff done, What are habits that other successful entrepreneurs do, what are some tools we all can use and what will it really take to get it all done. 

I want to motivate and empower you to take action on some of the information that I will share to move your business forward.

Keep IT Sunny~

September Roundup!

The scent of pumpkin spice wafts through the air as the days grow shorter, signaling the arrival of autumn. Hello, friends! As we bid farewell to summer and the third quarter, I hope you've made progress on your to-do list.

Running a business is undoubtedly challenging, but it's also incredibly rewarding. This month, I've shared insights on:

• Managing Your Time Effectively

• Achieving Financial Clarity

I hope you found these posts valuable for your entrepreneurial journey.

Pricing for Profitability: A Key to Business Success

As we transition into fall, let's discuss a crucial aspect of business: pricing for profitability. The term "profitability dating back to the 14th century, means "Something that produces or is likely to produce a profit." While this motivates most of us in business, are you truly pricing your services to ensure profitability?

If you're unsure, here are some tips to get you started:

1. Calculate the real cost of running your business:
   • Review your profit and loss statement
   • Identify direct costs like subcontracted labor, project based travel & project-specific supplies.
   • Identify indirect costs like rent, utilities, subscriptions, general operational labor.
   • Understanding total costs helps prevent underpricing and protects profits

2. Set a target profit margin:
   • Consider Business Mentor Luisa Zho's advice: "A service-based business should aim for profit margins of at least 50% right from the start."
   • Establish your own target profit margin by calculating monthly revenue target: (monthly costs + desired profit) ÷ gross profit margin percentage
   • Adjust pricing to meet your profit goals

3. Choose a comfortable pricing strategy:
   • Select a pricing model that aligns with your business and personal preferences
   • Options include fixed pricing, value pricing, or hourly pricing

As we embrace the fall season, I encourage you to implement these tips to help achieve your business goals. Remember, strategic pricing is not just about covering costs—it's about building a sustainable and thriving business.

Here's to a prosperous autumn filled with growth and success!

Keep IT Sunny~

Achieving Financial Clarity: A Bright Future for Your Business

I am a music lover of all genres. One of my favorite songs written by Johnny Nash and made famous by Jimmy Cliff is called, “I can see clearly now.” The song states:

“I can see clearly now the rain is gone

I can see all obstacles in my way

Gone are the dark clouds that had me blind

It's gonna be a bright (bright)

Bright (bright) sunshiny day

It's gonna be a bright (bright)

Bright (bright) sunshiny day

I love the description of how darkness turns into light and happy times are ahead. The sheer optimism of it makes me smile. 

As an entrepreneur, there's nothing quite like the feeling of clarity and optimism when you can see your business's path forward. It's like the sun breaking through after a storm, illuminating all the possibilities ahead.

But what truly brings a smile to my face? 

Clean, well-organized financials.

There's something deeply satisfying about pristine Balance Sheets and Profit & Loss Statements that tell a clear story about your business. Whether that story is positive or challenging, having accurate financial information empowers you to make informed decisions and take decisive action.

So, how can you achieve this level of financial clarity in your own business? Here are five key steps to consider:

1. Separate Personal and Business Finances: Keep your personal and business accounts strictly separate to maintain clear boundaries and accurate records.

2. Develop a Strategic Financial Plan: Integrate your financial goals into your overall business strategy to ensure alignment and focus.

3. Build Your Financial Team: Invest in professional help. Assemble a team including a bookkeeper, tax professional, banker, and financial planner to manage your finances effectively.

4. Regular Financial Check-ins: Set aside time to review your numbers consistently. Stay informed about your business's financial health to make timely adjustments.

5. Plan for Contingencies: Conduct regular cash flow analysis to understand your financial patterns and prepare for unexpected events.

By following these steps, you'll be well on your way to achieving financial clarity in your business. With a clear financial picture, you can confidently navigate challenges and seize opportunities, leading your business toward a bright and successful future. Remember, financial clarity isn't just about numbers – it's about gaining the insights you need to make your entrepreneurial vision a reality.

Keep IT Sunny~

How To Manage Your Time Effectively

Time is an elusive commodity.

We all have the same amount of time but how we spend it dictates where we end up in life. Benjamin Franklin stated that, "Lost time is never found again." As a small business owner, time seems to ooze away so fast that you can feel like a hamster on a wheel. Top motivational speaker, Michael Altshuler says it this way, “"The bad news is time flies. The good news is you’re the pilot."

Are You Managing Your Time Wisely?

If your answer is no then you are in the right place. I created a short list of tips to help you to manage your time more effectively. 

1. Create SMART Goals - SMART goals are specific, measurable, attainable, relevant & time-bound. Write out your goals and review them often.

2. Prioritize your tasks - Each morning list the top 3 things that will move the needle in your business and get those done first.

3. Create a schedule - Check out this article from Asana to show you how to do this.

4. Embrace Tech - I love using simple tools like this online timer to help me stay focused. It’s also helpful to mute notifications on your phone for a block of time while you are working.

5. Delegate - You don’t have to do everything in your business even if you are riding solo. If you have a team let them help you eliminate distractions.

6. Multitasking is an illusion - We have all heard that multitasking is a good thing but it is more effective to FOCUS: Follow, One, Course, Until, Success.

7. Eliminate Time Wasters - I think of this as things that are not your zone of genius and take you a long time to do. For me, it’s trying to do anything in Canva. I am not a graphic designer by any means and happily seek out those who are gifted in this area. 

8. Make Time To Power Down - I know we think that if we work ourselves to the bone we will find success. This might be a little true BUT if you are tired, sick & weary who cares? I would rather be refreshed and ready to give my best to clients. Take a vacation, staycation, or napcation. :)

Time is precious, and it’s important to recognize that we can never get it back once a day is gone. I hope these tips help you make the most of your time and use it more wisely.

Keep IT Sunny Always~

Welcome To September

The summer is winding down fast! It’s not fair I want to stomp my feet like a little kid. But it won’t change anything. Summer is on its way out & fall is coming in hot! Especially here in Las Vegas where it is still triple digits. 

This time of year is a great time to stop and reflect on your progress in your business. Where are you at? Are you closer to your goals or further away? It might help to remember where you once were and where you are now. 

Your business started off as an idea and now years later it is a growing company.

This is great!

But you are still pretty much a one-person band or you might have a small but mighty team of 10 people or less. The reality is you have a lot of spinning plates and a real need to reign in everything on your continuous list of to-do’s so that you are not driving yourself crazy. 

What is a successful entrepreneur to do?

My advice is to get clear on a few things like;

• Time management

• Financial clarity

• Pricing For Profitability

These are huge rocks to tackle so I won’t promise to share every single piece of information about these 3 topics this month. That is a one-way ticket to overwhelm city and no one wants to go there. 

:)

I will promise to share an overview of each topic to get you to stop, think & take action. Now I can’t promise that you WILL take action but I promise to give you food for thought. The action taken is up to you. 

Keep IT Sunny Always~

August Roundup!

The month is almost over, and I hope you’ve been able to stay on track with your business goals. This month, I aimed to share two important things with you:

How The P&L can help you with pricing strategies & profitability. If you haven’t had a chance to check it out, here are the cliff notes. (I loved cliff notes in college:)

Here's a summary of the key points:

The P&L statement is a crucial financial document that summarizes a company's revenues, expenses, and profits or losses over a specific period.

The P&L can help create pricing strategies that enhance profitability through:

• Revenue Analysis: Tracking sales trends and adjusting prices of top-selling items.

• Cost of Goods Sold (COGS) or Cost of Sale: Comparing direct costs to revenue to determine gross profit margin.

• Expense Management: Ensuring prices cover all operating expenses and identifying areas for cost reduction.

• Net Income: Evaluating the "bottom line" to assess overall pricing effectiveness.

The P&L is more than just a tax document; it's a tool for improving business performance.

There are five pricing strategies that top companies use in conjunction with P&L analysis:

• Cost-Plus Pricing

• Competitive Pricing

• Price Skimming

• Penetration Pricing

• Value-Based Pricing

  My goal is to encourage you to explore these strategies and use them alongside P&L analysis to drive profitability in your businesses.

In short, it is very important to understand and utilize the P&L statement beyond its basic financial reporting function, positioning it as a valuable tool for strategic pricing and profitability management.

The second thing I wanted to share with you was:

How can you manage cash flow effectively? Again if you haven’t had a chance to read the post here are my favorite cliff notes below.

Here's a summary of the key points:

• Cash flow definition: The movement of money in and out of a business, focusing on the timing of cash movements rather than just profits.

Three tips for managing cash flow effectively:

• Build a cash reserve as a buffer against challenges

• Manage payables effectively and speed up receivables

• Create cash flow projections to anticipate future income and expenses

Benefits of organized bookkeeping for cash flow management:

• Enables quick decision-making with accurate financial information

• Helps identify trends and patterns in cash flow cycles

• Makes the business more attractive to potential lenders

• The importance of understanding cash flow, especially during seasons of increased spending

• Organized bookkeeping is a key component for successful cash flow management

In short, a business may be profitable on paper, struggling to pay bills promptly could lead to financial difficulties. It is important for businesses to have a clear understanding of their cash flow and use organized bookkeeping practices to optimize their financial management.

Keep It Sunny!

How Can You Manage Cash Flow Effectively?

We are in the homestretch of the year. It's calm before the seasonal storm but it does seem like it costs more to buy groceries and other essentials. You might wonder where all your money goes on a personal level. The same can be said for your business finances.

It seems that daily there is a new increase in my business expenses due to vendors increasing their prices.

Are you experiencing the same thing?

Wouldn’t you like to keep more of your money and understand where exactly your cash is going?

In today’s fast-paced business environment, effective cash flow management is essential for the survival of your business. Let’s dive into how you can manage your cash flow effectively and explore the important role that organized bookkeeping plays in ensuring that you have the data needed to analyze your cash flow situation. 

First, we must define what is cash flow.

Cash flow is simply the movement of money in and out of your business. It’s not just about your profits but it’s the timing around when your money is flowing throughout your business. You might be profitable on paper BUT if you are struggling to pay your bills promptly then you could be headed for disaster. The question is how can you manage cash flow effectively? Here are 3 tips:

• Build a cash reserve that will give you a buffer between your business and the challenges that arise.

• Manage your payables effectively and ensure that you speed up getting receivables paid by customers.

• Create a cash flow projection for your business that shows the anticipated future income and expenses that will show up in your business so you can anticipate shortfalls. 

Having organized books can help you get there in 3 ways:

• 
  Having organized books can help you to make quick decision making because you will have accurate financial information at your fingertips.

• Having organized books will help you to identify trends in your business that will show patterns in your cash flow cycle that will allow you to plan for fluctuations and opportunities.

• Having organized books will help you to look attractive to lenders if you ever need a loan because they will appreciate reviewing your accurate financial statements. 

The year is almost over and we are heading into a season where money can fly right out of your pocket and you would be none the wiser. This can be paralyzing for a business and understanding how your cash flows throughout your business is essential. Bookkeeping that is organized is key to successfully managing your cash flow. I hope these tips will help you to understand and optimize the cash flow in your business.

Keep IT Sunny~

How The P&L Can Help With Pricing Strategies & Profitability

What comes to mind when you think of financial statements?

Thoughts of dread?

Thoughts of worry?

Happy thoughts?

What about pricing and profitability thoughts?

The number one financial statement that most entrepreneurs care about is the Income Statement, Profit and Loss Statement or affectionately known as the P&L statement. Whatever name you call it as entrepreneurs we love checking this report to see how our blood, sweat & sometimes tears are bearing fruit. 

What is the P&L?

According to Investopedia, “The Profit & Loss statement, is a financial statement that summarizes the revenues and expenses, costs, expenses, and profits or losses of a company during a specific period. These records provide information about a company’s ability to generate revenues, manage costs, and make profits.”

Can the P&L help us to create pricing strategies that help with more profitability?

The answer is yes. 

Revenue Analysis: The revenue on the P&L report is based on the prices you charge your customers. We can track trends in sales volume by different sales categories to see what is a top seller and what is a dud. Additionally, we can adjust the pricing of the top sellers to increase revenue. Think about when you go to the grocery store to buy a sales item and when you go back the item is no longer on sale it is now full price. 

Cost of Goods Sold or Cost of Sale: This metric can help to show the relationship between what direct costs (materials, labor) are contributing to producing goods or services. It can be useful to compare the COGS or COS to the revenue generated to arrive at the gross profit margin. The gross profit margin is essential for creating prices that cover costs and allow you to be profitable. The higher the GPM equals more revenue to cover business expenses which is a good thing. 

Expense Management: We all have operating expenses in our business like administration operation services, utilities, and all the rest. This portion of the P&L can help with creating pricing for your services or products. It is important that you generate enough revenue to cover all your expenses so you can remain profitable. Keeping a keen eye on these costs can help you to pinpoint waste and areas of improvement. The end goal is to use this information to keep your prices competitive and lucrative for your business.

Net Income: This part of the financial statement is a fan favorite. The “bottom line” as it is widely known as is where the rubber meets the road. It clearly shows if the business is making money or taking a L. The information derived from the bottom line will help to understand how well you have priced your products or services and if there is a need to adjust your pricing. 

There you have it. Financial statements are more than just what you give your tax professional at tax time. In particular, the profit and loss statement can highlight a myriad of things that affect how your pricing like Revenue, Cost of Goods or Cost of Sales, Expenses, and Net Income. It is essential to dig into the details of this report to see if improvements in certain areas can be made to increase profitability. Top companies already know this and use this information to create the following top 5 pricing strategies:  

• Cost-Plus Pricing

• Competitive Pricing

• Price Skimming

• Penetration Pricing

• Value-Based Pricing

These strategies are focused on different product and service types and changing market conditions. Click on the links above to learn more about each one and I hope it sparks your interest to use one of the strategies along with your P&L to drive more profitability in your business

Keep IT Sunny~

Welcome to August!

Photo by Jess Bailey Designs: https://www.pexels.com/photo/composition-of-august-letters-on-table-4926898/

We are in the thick of summer and going back to school season depending on what part of the country you reside in. It feels like the kids are going back to school earlier and earlier every year. As you prepare for all that the fall season brings for your family and your business it is a great time to check in on your goals to see where you stand.

How are sales shaping up so far?

I don’t know about you but lately, it feels like everyone is selling something to me in my inbox. I am going to start calling this the season of offers. It is good to see that capitalism and entrepreneurship are alive and well in America. 

It led me to think about what I should focus on for August in my blog post and I came up with the following:

• How financial statements can help with pricing strategies for profitability. Additionally, I want to share the top 5 strategies that companies are using to see if they will spark ideas for you. 

• How to manage cash flow effectively and how organized books can help you achieve this goal. 

The fall season is upon us as we take a run in the last half of summer. It’s a great time to check in with your business goals to see if you are still on track. Sales are the lifeblood of any business and it will be fun to take a look at pricing strategies for profitability and managing cash flow effectively.

Keep IT Sunny~

July Roundup!

July was truly a whirlwind!

The Fourth of July came and went and here we are at the end of the month heading into the fall season. I hope you had a fantastic time relaxing and enjoying all the festivities that took place this month. As an ambitious entrepreneur, I am sure you worked as hard as you found time to chill out. The posts I wrote this month were to help you look at growing your business by:

Scaling your service offerings

Optimizing operations for growth

Build a high-performance team

I hope these posts will help you kickstart more growth in your business and put more money in your bank account.

Keep IT Sunny~

How to Build A High-Performance Team

A study from The Oxford Review stated, “Employees spend an average of 54% of their time working within teams.” This shows that teams play an important role in the success of your business. Hiring team members who are high performers is increasingly important to maximize the impact it will have on your bottom line.

The question of the day is how do I find these types of people?

I want to share two things in the post today:

• How to find high performers.

• How to create a team that is full of high-performers

To go back to the first question; Where do I find these people? I did some research and found that the key to finding high performers is all in your strategy for recruitment. It’s important to figure out what type of employee is going to be a good fit for the team you are trying to build. In many cases a high performer type might be great as an individual contributor but not so great in a team environment.

Reviewing your recruitment process to focus on the potential that you can mold and not just skills is key. Additionally, looking for soft skills like communication and creativity could go a long way to helping your business become more innovative. A person who is highly adaptable and can inspire others is important. 

In response to the second point above, you can create a team of high performers by having clear objectives for how they contribute to the team, encouraging open lines of communication, setting clear goals that are S.M.A.R.T., proactively communicating that conflict is a natural part of team dynamics and emphasizing effective tools to manage it. Finally, it is up to you to create and foster a collaborative environment that builds trust, encourages open communication, and involves team-building activities.

You have worked so hard to grow your business but to get to the next level you will need a team. Finding those key people who are high performers can be challenging but having a list of attributes that you are looking for helps.

Once you find those future high performers, it is up to you to keep them motivated by giving them clear goals and objectives while fostering a collaborative and supportive environment.

Keep IT Sunny

3 Tips To Handle Explosive Growth In Your Business

You are on fire!

The sales are racking up and your bottom line is growing expeditiously.

There is one problem.

You don’t want sales to start suffering and you are running out of gas. What can you do to keep the business party going? Check out a few tips below to help keep your ship sailing along.

Tip One - Streamline Your Service Processes

Is everything moving along without a bump in the road?

If there are bottlenecks in your current customer service or service delivery workflow, you could be headed for disaster. We have all read negative reviews on Google and quickly decided not to do business with that company. Check out these tips to help with streamlining your processes and these tools for creating standard operating procedures. Also, check out this resource for best practices for writing awesome SOPs.

Tip Two - Know Your Numbers

I know this sounds like a broken record BUT understanding financial data like how much you sell vs. how much you spend and if you are profitable by doing a break-even analysis will go a long way to help you achieve business goals.

Specifically, it’s important to manage your cash flow, use the data to update your pricing strategies and have the information needed to make capital purchase decisions. Check out this post I wrote about making money and measuring how well your business is doing.

Tip Three - Take Care Of Your Customer

We have all heard the phrase, “The Customer Is Always Right.”

Harry Gordon Selfridge, a very successful retailer from the early 1900s coined the term which is meant to promote a high priority for providing customer satisfaction. If you take care of your customers they will take care of you. I am sure we have all heard that phrase too.

One of the challenges of rapid business growth is maintaining the same quality of service as you scale. One good first step is to take the pulse of your current customers by using surveys and gathering customer success stories. Check out this tool for creating customer surveys and this tool can be used for collecting customer testimonials. Additionally, you can use this feedback in your marketing efforts but ask your customers for permission first. 

It’s a full-time job managing all the aspects of your business as it grows. The goal is to keep all the balls in the air and organized. I hope the tips I shared will help you to be an amazing entrepreneur juggler.

Keep IT Sunny~