Profit First Nation Ep. 125: Mastering Profit First: Expert Advice on Expense Categorization, Price Increases, and Inflation Preparedness
In today's episode, Billie Anne Grigg, a distinguished Chief Profit First Profession Guide, joins Danielle as they address listeners' questions about Profit First. Together, they delve into properly categorizing expenses and ensuring they are allocated to the appropriate accounts. Additionally, they tackle the often daunting prospect of raising prices. While this may seem intimidating for small business owners, they emphasize that it presents a unique opportunity to emulate the strategies employed by larger vendors. Furthermore, Billie Anne and Danielle discuss inflation and provide insights on how entrepreneurs should proactively prepare for its impact. Tune in to gain valuable knowledge and guidance on these essential aspects of Profit First.
IN THIS EPISODE:
- [02:32] Billie Anne answers the question of how you disperse a real estate agents commission
- [04:15] How do you classify the cost of goods on the instant assessment when you don’t have control over the cogs
- [07:57] What should expenses be for an online boutique, i.e., salaries, rent, shipping and advertising
- [11:54] Billie Anne recommends Profit First for E-Commerce Seller’s book.
- [13:52] Should you raise prices during this inflationary period
- [18:51] Make a plan and prepare for inflation or a recession so you’ll be a step ahead of those who don’t prepare
KEY TAKEAWAYS:
- Prices are being raised all over the board. Therefore, a prudent business person should also raise their prices.
- Now is a great time to negotiate rental space because there are many vacant spaces.
- Marketing expenses must produce a six to ten times return on that expense. Otherwise, you need to try another marketing strategy
GUEST BIOGRAPHY: Billie Anne Grigg
Billie Anne has been a bookkeeper since before the turn of the century. She is a QuickBooks Online ProAdvisor, LivePlan Expert Advisor, FreshBooks Certified Partner and a Mastery Level Certified Profit First Professional. She is also a guide for the Profit First Professionals organization. In 2012, she started Pocket Protector Bookkeeping, a virtual bookkeeping and managerial accounting service for small businesses.
Pocket Protector Bookkeeping - Website
RESOURCES:
Profit First Professionals - Website