Brooke Lively helps entrepreneurs sleep better at night. How? As the founder and CEO of Cathedral Capital, her company helps business owners become profitable and thriving. And they provide financial strategy as well as outsourced CFO, accounting and bookkeeping services. That's the kind of support that every business owner needs and helps them rest easy.
Brooke and her team have worked with hundreds of businesses and over the course of time have identified six key numbers that every entrepreneur should actively chart in their business. The six include: Cash Flow Forecast, Owner Compensation, Work in Progress, Sales Calls Booked and Net New Engagements. The principles that Brooke outlines in her new book, From Panic to Profit, applies to all industries and business types. So whether you operate a retail store, sell products online, have a service based business or manage a law firm, these six numbers apply.
Cash Flow Forecast (CFF)
CFF tells you if and when you're going to be short on cash. Make sure you're continually looking ahead to identify any weeks where you might face a cash crunch. Download your free copy.
Are you paying yourself an appropriate amount of money for the effort you're putting in and the risk you're taking? You work too hard to be the last one paid.
Work In Progres (WIP)
Each employee should have a billing goal. They can be defined as hours, a single metric or even a point system. This number holds employees accountable AND tells you what next month's revenue will be.
Budget v.s Actual - A Profit Plan
This number tells the story of what you want your business to accomplish in the next 12 months. It gives you the ability to see how your efforts effect both revenue and expenses. And it tells you if you're on track to reach your goals.
Sales Calls Booked
With this number you can predict how many new clients or projects will be signed in the following month. If you sell products, measure the number of visits to your website.
Net New Engagements
This is projects or clients won, minus clients lost or work completed. This number allows you to predict how much work is in the pipeline, how that work will impact your team, and next month's revenue.
If you're looking to grow your financial intelligence or improve the performance of your company, download the Fierce Lab podcast we did with Brooke, Episode No. 29, because this one is for you! It's full of actionable tips, spoken in easy to understand terms, and filled with extra reference resources.
To learn more about Brooke and Cathedral Capital and to download your free copy of their Billing Grid, visit their website: https://www.cathcap.com/fiercelab
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