S16-E2 - Featuring
March 19, 2018
Being profitable is not always about selling more and gaining more clients. In this episode we talk through basic cost management and how we keep our finger on our financial pulse to make informed decisions and ensure we have a good balanced approach to work and play.
It is essential to know the current state of play. What do you have coming in? What is going out?
This allows you to:
Knowing your business allows you to make relevant decisions in both spending and in cutting costs.
Without a clearly planned budget, you are going to be making purchasing decisions blindly. Planning purchases, SaaS subscriptions and new hires based on what is in the bank at any one time is inefficient and likely to bite you on the behind.
The steps to creating a budget can be broken down into:
Freshbooks have put together this fantastic article to get you started.
If you are either struggling to get the data together, or are not sure how to read what you see, then consider getting in help. We often can’t see the wood for the trees. It’s very easy to miss things in our calculations. Equally without financial experience, we may misinterpret what we see.
Despite running financial data in agency life for years, I still lean on my accountant for regular advice and to sanity check my planning and my predictions. It pays to have an expert on board.
The keys to cost management are