“I don’t do numbers.”
I’ve heard it a thousand times before – and trust me, I get it. However, I also KNOW you’re leaving money on the table. This is why I focus on marketing and profits in business coaching. Numbers make me totally geek out, because if you really GET your business and how it can thrive, the rest becomes a lot easier.
This is stemming from a client of mine who reported her October numbers for 2020. They were AWESOME – but let’s talk specifics. This client saw that her revenue was up $7,000 from last October. Can we take a moment to recognize how huge that is in retail (especially in 2020)?!
In addition, her gross profit is up as well. Right now, she's seeing that her gross profit is seventy percent, which means seventy cents of every dollar is profit for her business. That's huge -- typically the average is at about fifty-five percent.
For those that aren’t focused on numbers, gross profit is not the money you take home, it’s simply your revenue. From there you can subtract out all your other expenses (salaries, rent, etc.) and find your take home numbers.
Gross profit is a great starting point for you to evaluate if your inventory purchases are selling or not. At the end of the day, you’ll want your gross profit to be as high as possible.
If you’re unclear on how to begin with numbers and the daunting term of “accounting”, reach out to me via Instagram DM. I created a worksheet to help get you started that I’d be happy to share!
The proof is in the profits.