Business By The Books with Danielle Hayden How Cost Cutting Can Put Your Business at Risk - Ep 169
Have you tried cost cutting to increase profitability, only to have it backfire? That's because cutting costs can actually kill business growth. This episode outlines strategies to boost profitability, make smart financial decisions and reach your business goals. CEO Danielle Hayden shares actionable steps to align spending with business goals, highlighting the importance of analyzing financial statements and knowing your numbers. Her insights on where to cut costs or strategically increase spending using the Kickstart CFO framework will transform your approach to business growth. If you want to pay yourself more as a business owner and confidently make business decisions, this episode is a must-listen!
Key Takeaways:
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Contrary to popular belief, cost cutting can limit growth and strategic spending can actually help businesses scale.
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A critical analysis of financial statements (focusing on key areas like payroll, fees, marketing, etc.) is a great tool to guide business owners on making important business decisions.
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A balanced approach to time and money not only enhances overall business efficiency but also optimizes resource allocation.
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Monitor these three key performance indicators (KPIs) to manage business growth: profit by month, percent of sales for top expense categories, and owner's pay over time.
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Outlining goals and understanding the season of their business will help business owners adapt their financial strategies to their goals.
Topics Discussed:
Foundations of managing business expenses (2:10)
Financial review: cutting costs versus strategic spending (6:08)
The power of negotiation and strategic spending (19:57)
Key KPIs to track (23:15)
Resources:
Learn more about Kickstart Accounting Inc.'s CFO Services: https://kickstartaccountinginc.com/CFO
Download the Financial Goal-Setting Worksheet: https://kickstartaccountinginc.com/goal/
Listen to episode 166: How Debt Can Skyrocket Your Business to Success! https://kickstartaccountinginc.com/how-debt-can-skyrocket-your-business-to-success-ep-166/
Connect with Kickstart Accounting Inc.:
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