How to determine the profitability of your small business
Editor’s Note: this is for all of my consultants, freelancers, and solopreneurs out there, but my startup family might find this useful as well. Enjoy!
One of the biggest hurdles I had last year when I first started my consultancy was understanding my runway, cash flow, cash on hand, and overall profitability of my business.
I’ve talked a lot before about understanding the finance side your business when you first start out.
It’s tempting to just leave it up to your accountant (and no shade to those who do, of course). But something I’ve found is that unless you plan on bringing them in as a full-time or part-time Chief Financial Officer or CRO, they’re just never going to analyze your business in the way that is ultimately your responsibility.
Which means if you want to build something sustainable, you’ll need to understand what makes a business actually work.
I also realize, though, that while there’s a ton of articles around finances, accounting, and overall business health, there’s not a whole lot of tools (read: spreadsheets) that break it down for you.
I’m talking about the Companies of One, consultancies, freelancers, side hustlers, solopreneurs, micro-agencies, and more out there.
On top of that, there’s already lot of stigma around talking about finances. The same is true when it comes to business.
Part of that is perfectly understandable and totally necessary, but it also leaves a lot of us newbies guessing about what’s normal and realistic.
So I decided to build something for that exact reason. 💁♀️ This is the spreadsheet I’ve built over the past year while building and running my own consultancy DemandMaven. It’s got some fake data in there, but it has all of the financial tools I used to understand the health of my business.
Plus, there’s a 30-min video walkthrough of how to use it. Not only do I cover how to leverage the spreadsheet, but you’ll also learn:
- How to look at cash flow of your business
- A breakdown of the “Golden Rule” for agencies and small businesses
- How to plan for the future
- How to know when it’s time to give yourself a raise 😉
- How to figure out if you’re overspending or underspending in any given area
Aaannndddd it’s completely FREE (although I might charge for it in the future so get it while it’s 🔥).
Enjoy, and if you have any questions, don’t hesitate to reach out.
– Asia ✨
Do you struggle with fear or imposter syndrome?
We all deal with some form of fear, anxiety, and imposter syndrome. The challenge that you’re probably facing right now, though, is finding your way through all of the dark thoughts and quieting the fear.
You have a business to run, and while fear is healthy, letting it bully you into submission certainly isn’t the answer either.
You need to build resilience, and if you click the button below, you’ll learn why it’s the most crucial trait to build when starting a business.