47. How To Use Your Numbers For Your Next Business Strategy
August 2, 2019
This episode is brought to you by my bookkeeping strategy sessions. When it comes to your bookkeeping, you’re probably in one of three areas. Doing it yourself, outsourcing some or all of your bookkeeping to a professional or understanding what the reports mean and making better business decisions from that information. Each of these stages comes with different struggles and questions. I can help with all three. Bring your questions, and I’ll bring some solutions. To book one of these sessions, email me at firstname.lastname@example.org. Now, on with the show.
How to Use Your Numbers for Your Next Business Strategy.
Welcome back to the podcast! If you’re headed back to school or if you have kids that are headed back to school, you’re probably getting back into the swing of things.
I’m not going back this fall, but I was last year for my last semester in my masters program and I just love the energy that fall brings and the routine that it brings naturally when the world seems to be back on it’s routine.
I want to encourage you if you’re just now finding this podcast because you’re thinking about fall and your business maybe a little more seriously and you have room to breathe without kids hanging all over you during the summer that you are in the majority of people who start to think about these things again in the fall. Dig in right where you are and I am here to help if you have any questions. My email is email@example.com and my Instagram is @lydia.miller.mba if you want to get in touch.
Now, let’s talk fall and winter launches. Most of the time, businesses make most of their revenue around Christmas. This is especially true if you run a product-based business because most people buy products as gifts in November and December. If you’re in that group, you may be looking toward the end of the year and strategizing on how to make the most money from your products and how you can set yourself up now to have a profitable fall
Today, I want to share a few ways on how you can use your numbers for your next business strategy.
These are not the only ways, but they are a few that I think you can use.
- Were you profitable last year? If this is your second year in business, I want you to look back at last year and see if you were profitable during the fall of last year. If you were, then I want you to see how profitable, so look at your revenue minus your expenses and see just how much profit you made roughly. If you weren’t profitable, I want you to find out why. Were your marketing costs high? Were your sales low? Was the cost of your product too high? Were you paying too much for products? What contributed to you not keeping more money in your business?
- How much did your average customer spend? If you own a shop or an online store or even if you just sell multiple products, look at your customer numbers! Do most people spend approximately $60? Find a way to make a bundle for that amount to encourage more people to spend that much if that’s the average. Do some customers add in the same accessory or the same complimentary product when purchasing your item? Make it easy for them to find it! Find out how much the average customer spent so you can dig into what was bought, how much, when they bought it and really get into their mindset so you can find more customers with that mindset and make more money.
- Look for retainer clients. This is especially true if you have a service-based business. This is what has taken the stress from my business is having retainer clients who pay monthly. For you service-based business owners, I want you to look at how much your retainer clients are paying, or how much you’d like to book someone for, and how many hours per month you’re spending on them. Divide and you’ll find out your approximate hourly rate. If it’s too low, then it’s time to raise your prices. You may think that no one will pay your higher prices, and that may be true. Look at what you’re offering and add in more value, not necessarily time, to what you’re giving your clients and position yourself in the marketplace with that instead of with what you’ve been doing if you’re looking to raise those rates.
I’d be honored to work with you. To get started, email me at firstname.lastname@example.org with the problem you’re having and we can discuss the best way to get to a solution.
If you are ready to use your numbers to help your business, please subscribe so you will be notified when the episode drops.
I would love to connect with you. You can find me on Instagram @lydia.miller.mba and always by email email@example.com.
So until next time, go, make it happen.