Profit First Nation Ep. 133 Bonus - Motherhood, Apple Pie and All That Happy Horseshit
Danielle and Cyndi Thomason, an expert certified in Profit First at the mastery level and the author of Profit First for E-commerce Sellers, explore the critical role of inventory in determining the success of your business. Cyndi shares valuable techniques for managing inventory levels and emphasizes the importance of maintaining distinct accounts. They will also investigate the advertising budget, highlighting the recommended percentage allocation for this aspect. This episode offers valuable insights and practical advice for ensuring the profitability of your business.
IN THIS EPISODE:
- [01:27] Cyndi talks about why inventory can be a serious pitfall for a business, why you need an inventory account
- [08:51] Looking at each product you sell to determine how to price
- [11:39] Cyndi shares the importance of inventory days and getting creative to move stale inventory
- [15:39] She explains why inventory cash flow is different from your operating expenses and the part advertising can play if not managed well
- [19:27] Pay attention to the return on their advertising spend and how to figure the percentage you should spend
- [26:45] Cyndi shares the downfall of integrating your accounting system with your inventory
KEY TAKEAWAYS:
- The key to operating a business where inventory is involved is to allocate funds so you don’t have to borrow money to buy stock.
- Sales are lost when you run out of inventory. Good record-keeping through accounts prevents that from happening.
- Be very careful of how much you spend on advertising. It is an expense that can quickly get out of hand.
GUEST BIOGRAPHY:
Cyndi Thomason, author of Profit First for Ecommerce Sellers, is a Certified Master Profit First Professional, and the founder and president of bookskeep, a virtual company that provides bookkeeping and Profit First consulting services to ecommerce clients all over the world. Cyndi devotes much of her time speaking at various events such as ASD Market Week, ProfitCon, Marketplace Brand Accelerator Training, the Ecommerce Business School and other webinars, teaching ecommerce businesses how to implement the Profit First method. She has contributed to publications such as Skip McGrath s Online Seller s Resource and is a regular contributor to The Private Label Insider and the Inventory Lab newsletter. Honors and awards include Profit First Member of the Year 2016, Profit First Go-Giver 2017, and one of the Top 50 Women in Accounting Award 2018, presented by Practice Ignition. Cyndi is a master gardener and enjoys being surrounded by nature, spending time with family, friends and a menagerie of fur babies.
Bookskeep -Website https://www.bookskeep.com/
Cyndi Thomason - Website https://www.bookskeep.com/about/cyndi-thomason/
ABOUT THE HOSTS:
Danielle Mulvey is a former flight attendant-turned-entrepreneur and owns multiple businesses doing $50 million in annual revenue. She is one of the exclusive, select group of Mastery-Certified Profit First Professionals worldwide and the go-to “HOW TO IMPLEMENT” workshop facilitator for Profit First and WSJ Journal best-selling author Mike Michalowicz following his keynote speeches. Danielle is currently running multiple businesses, from start-ups to mature businesses with 10-year plus track records and revenues ranging from $1M to $40 million in annual revenues and is a certified numbers geek about Profit First, leveraging the DIY cash management system for small business to achieve maximum profitability. She can personally guide business owners to achieve maximum profitability based on her 25 years of experience as an entrepreneur who has been there and done that.
Additionally, Danielle authored the book The Rapid Read™ Guide to The 5-Star Employee Rating System™ and is currently collaborating with Wall Street Journal best-selling author Mike Michalowicz on his new book, to be released in Q1 2024, titled ALL IN: How Great Leaders Build Unstoppable Teams.
Mike Michalowicz is an entrepreneur and New York Times and Wall Street Journal best-selling author of Profit First, The Pumpkin Plan, SURGE, Toilet Paper Entrepreneur, Clockwork, Fix This Next and Get Different. BusinessWeek called Toilet Paper Entrepreneur, a business cult classic. His books have been translated into ten languages, and Mike has had the privilege to speak on stages worldwide because of his passion for connecting with entrepreneurs.
As the founder of Profit First Professionals, he empowers accountants, bookkeepers, and business coaches with the tools and techniques to maximize client profitability, allowing them to uplevel from being one of the 83% of small businesses operating check-to-check and struggling to be profitable to becoming one of the 17% of thriving and highly valuable businesses with cash in the bank to correlate to profitability. Mike also co-founded the business growth consultancy Provendus Group and has successfully founded, built, and sold two technology service-based companies. He is passionate about sharing his experiences and advice with entrepreneurs and sits on formal and informal advisory boards while maintaining relationships with angel and early-stage investors.
RESOURCES:
Danielle Mulvey - Website https://www.daniellemulvey.com/
Danielle Mulvey - Linkedin http://linkedin.com/in/danielle-mulvey-66a315
The All In Company - Website http://theallincompany.com
Profit First Nation - Website http://profitfirstnation.com
Profit First Professionals - Website