Small Business Series - A Simple Financial Scorecard For Small Business Health (Ep 4)

Episode notes

Send us Fan Mail Bonus Episode #101: If someone asked whether your business is financially healthy, could you answer without guessing? We walk through five numbers that cut through the noise and tell you what’s really happening, even when sales are up and your bank account looks fine. We start with revenue, but we don’t stop there. We show you how to compare revenue month over month and year over year, and why “more sales” can still mean a weaker business if it costs too much to deliver. From there, we break down gross profit margin in plain language and connect it directly to pricing, discounts, labor, materials, vendor costs, and product or service mix. The goal is simple: understand how much you keep from every dollar you sell. Next, we move to net profit margin to translate performance into a clear bottom line view, then zoom in on cash available so you can see your real short term flexibility after payroll, taxes, rent, debt payments, and vendor bills. We also explain why a rolling cash flow forecast beats relying on a bank balance snapshot.

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