Mini Episode: Reading Your P&L Hurting Your Brain? Try This!

Episode Summary

In this mini episode of the Free To Grow CFO podcast, Jon Blair discusses how to effectively organize your Profit and Loss (P&L) statement to maximize insights for Direct-to-Consumer (DTC) brands. He emphasizes the importance of understanding the difference between fixed and variable expenses and how to calculate profit using contribution margin. By reorienting the P&L to focus on contribution margin before and after advertising, businesses can better assess the impact of their advertising spend on profitability. This approach allows for clearer insights into financial performance and helps identify areas for improvement.

Key Takeaways:

-Not all expenses are made equal; understand fixed vs. variable expenses.

-DTC brands need to isolate fixed overhead in their P&L.

-Reorient your P&L to focus on contribution margin.

Episode Links

Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/

Free to Grow CFO - https://freetogrowcfo.com/