Business By The Books with Danielle Hayden Operating in the Red? Here are the Steps to Stop Losing Money and Regain Profitability – Ep. 210
Running a business comes with ups and downs, but what happens when your numbers dip into the red? Don't panic, there are actionable steps you can take to turn things around! In this episode, host Danielle Hayden, founder and CEO of Kickstart Accounting, Inc., breaks down what it really means to be "operating in the red" and, more importantly, provides practical strategies on what you can do to regain profitability.
Learn how to identify the root cause, make smart adjustments, and build resilience for the future. Whether this is a short-term hurdle or a bigger challenge, we've got you covered with exact steps to help you get back on track!
Key Takeaways:
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What is "Operating in the Red": "Operating in the red" means your expenses are higher than your revenue. Knowing how to identify it in your financial statements can make all the difference in regaining profitability.
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Assess the Causes: Determine if your situation is due to a one-time expense, seasonality, a market shift, or something else entirely to take the right action.
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Cut Smart, Not Hard: Reduce non-personnel expenses first before making decisions that may negatively impact your team, efficiency, and/or business growth.
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Build a Cash Reserve: Having a financial cushion can help your business weather slow periods and unexpected costs.
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Mindset Matters: Shifting your perspective on financial setbacks can empower you to take proactive steps instead of reacting out of fear.
Topics Discussed:
What Does It Mean to "Operate in the Red" (00:00:39 – 00:02:11)
Assessing the Causes of Profit Loss (00:02:12 – 00:07:39)
Determining Where to Cut Expenses (00:08:24 – 00:10:06)
Identifying the Problem and Learning from It for the Future (00:10:08 – 00:14:12)
Managing Your Money Mindset Through Tough Times (00:14:12 – 00:20:03)
Resources:
Episode 75 | Finding Profitability in Your Business
Expense Grading Worksheet | https://kickstartaccountinginc.com/grading
Money Mindset Mastery Program | https://www.e-suite.co/money-mindset-mastery-sales-page
Kickstart's Courses | https://www.e-suite.co/our-programs
Book a Call with Kickstart Accounting, Inc.:
https://www.kickstartaccountinginc.com/book
Connect with Kickstart Accounting, Inc.:
Instagram | https://www.instagram.com/Kickstartaccounting
YouTube | https://www.youtube.com/@businessbythebooks
Facebook | https://www.facebook.com/kickstartaccountinginc