If you’ve been in business for any length of time, you’ve probably heard the saying “Revenue is vanity; profit is sanity”! My special guest today talks about nothing else – just profits!!!
Welcome to this 3-part series on PROFIT – this is part 1.
Melissa and I have a great conversation about business finances, profit, and what a recession could mean for your business.
Her advice is straightforward and super practical! I love it.
Here’s her ACTION PLAN to stay current with your finances in an economy on the brink of a recession:
1. Have the courage to understand your numbers so you get the right feedback to make improvements to your business – no better time than during an approaching recession. (For more on this – S2 Episode 45 – Hidden Profit & Time Saboteurs – I talk about financial abdication and other profit misalignments!)
2. Keep personal and business finances separate!
3. Keep your financial books up to date and have them done by a reputable bookkeeper otherwise it can be costly.
4. Realize that the cash in your bank account is NOT your profit! Keep 6 months cash reserves on hand.
5. During the good times, apply for loans or lines of credit, even if you don’t use them.
6. It’s never too late to prepare for a recession!
7. Download Melissa’s Cash Confident 5-step business financial roadmap here
Melissa has over 20 years of experience working in business accounting and her work includes industries such as tech startups, government, not for profits, public accounting firms and corporate accounting.
Melissa’s wide range of talent extends to corporate tax, personal tax, tax credits, internal controls, risk management, auditing and so much more.
Through this combined level of education and experience, Melissa realized that she loves teaching entrepreneurs how to manage their business finances. The more information and resources Melissa can get out to people, the happier she is. Melissa believes in creating information available to you that will help you in building your business and make it the most successful, and profitable, business that it can be.
Melissa is a regular contributor at Forbes and Entrepreneur and writes about managing personal finances and business finances. Managing business finances is an essential skill for all business owners, and Melissa believes in the responsibility to share information and inform business owners.