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Simple Financial Advice for Women Enterpreneurs

January 29, 2013

Business Advice for Small Business

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This time of year, business owners do what individuals do when we prepare our taxes — we meet with our accountants and take a hard look at the bottom line. Sometimes, these meetings lead to the shock of learning that our optimistic financial outlook has little basis in reality.

The best way for an entrepreneur to fix the problem is to be more cognizant of financial figures on a monthly basis and make periodic adjustments if monetary goals aren’t being met. Here is simple financial advice to help businesswomen become more diligent about financial business decisions in 2013.

* Remember a business plan is the best tool to establish an entrepreneur’s monetary goals. It is essential once a plan is established to review, analyze and update the plan regularly. The plan is the detailed map to guide any entrepreneur through the year.

* Understanding the profitability of every service or product that is sold is valuable in decision making for a business owner. If a product is 75% expense and 25% profit, and a service is 25% expense and 75% profit, it makes sense to market services before products. Understanding the profitability ratio can also help an entrepreneur cut product expenses to earn more profit. Understanding your numbers can increase your bottom line.

* Analyzing current and past customer data can aid in establishing new financial projections. The statistics might reveal 20% of one’s clients produce 80% of one’s revenue. If that’s the case, the business owner needs to determine whether they should be selling more often to the 20% or 80% of their customer base? Understanding who to sell to and how often can help increase sales numbers.

If you don’t want to leave your accountant’s office disappointed in your financial figures, make sure you are consistently producing positive financial rewards and seeking business advice to create a stronger business plan to achieve your highest financial goals.

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2 Comments leave one →
  1. February 5, 2013 5:46 am

    Hi Tracy,

    All very good advice! I think the key – which is what you are essentially saying in each point – is to do your due diligence. It’s a little extra work, but as you’ve pointed out, it pays off.

    The one particular area I want to focus on for myself is bullet number two. I know that eventually I will cut out some services I offer because the time spent performing them is greater than time spent performing others. I track my time (Excel spreadsheet) to understand which service is in alignment with my financial goals. It’s an example of “doing a little extra work,” but I know the information will be helpful.

    Thanks for your post! I signed up to have your blogs sent to my RSS feed awhile back and look forward to your topics. Keep them coming!

    Have a good day,
    Tracy

    (PS: I think you meant to say 2013 at the end of the second paragraph.)

    Like

    • February 5, 2013 7:07 am

      Tracy:

      Thank you for reading the blog and for your comments. I appreciate them. Thank you for sharing some of your financial strategies with our readers too.

      In entrepreneurial spirit,

      Tracy Higginbotham

      Like

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