The Pareto Principle, commonly known as the 80/20 rule, basically implies 80% of results come from 20% of causes. When applied to business, this principle analyzes client and sales data to understand where business owners should invest their time, money, and energy.

In this episode, I delve into the 80/20 rule and how it allows business owners to better define which clients, services, and employees provide the best return on investment.

In this episode, you’ll also hear:

• Identifying high profit customers and services
• Analyzing employee and task productivity
• Knowing where your sales come from

Must-listen moments:

[00:03:20] What you're looking for is to find out and isolate those services that are making you the most money and make sure everything is focused on it.

[00:05:44] By applying the 80/20 rule, we can maximize the productivity and efficiency by concentrating efforts on the activities that yield the greatest results and contribute most significantly to the success of the business.

[00:09:40] Sometimes that's the biggest problem. We don't realize that we're spending so much of our time and energy. and money on things that don't have a high return for us.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

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For any business to be profitable, services must be priced appropriately. Business owners need to regularly set profit margin goals and adjust pricing accordingly.

In this episode, I break down cost-based and value-based pricing, and tips for competitive prices that keep clients happy and revenue goals on target.

In this episode, you’ll also hear:

• Covering costs and profit margin
• Advantages of value-based pricing
• When to change your pricing strategy

Must-listen moments:

[00:00:38] We think if we do more sales, we'll be profitable. But if you haven't priced your services correctly, no amount of sales is going to make you profitable.

[00:06:26] Your knowledge comes from years and years of experience and should not be set at an hourly rate. That doesn't cover all the education, all the training you've done, but value-based pricing would cover that.

[00:08:49] The right pricing strategy is clearly based on industry, your target market, and unique value proposition that your services bring.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

Credit:

Audio/video editing and show notes by Podcast Abundance. Find out how they can help you too by visiting www.podcastabundance.com/services

Just like we visit the doctor and dentist for regular check-ups, business owners must routinely review expenses and decide when cuts are necessary. Monitoring the financial health of your business is key to its long-term success.

In this episode, I outline effective ways to decrease expenses, increase efficiency, and preserve customer satisfaction without compromising the value of your goods and services.

In this episode, you’ll also hear:

• Eliminating unnecessary expenses and streamlining productivity
• Suggestions for taking your company lean
• Cutting costs while maintaining quality

Must-listen moments:

[00:01:35] You need to identify areas where you can reduce your expenses without compromising quality.

[00:05:31] Engage in your customer base to understand what their priorities are and what they have as expectations of you.

[00:07:02] It's not really just about saving money, it's optimizing the resources that you have and ensuring long term sustainability and success.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

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The success of any business can be linked directly to organized financial reporting. Knowing exactly what profits are coming in, what expenses are going out, where business is coming from, and how to maximize finances is the best way to keep a business growing and ready for the long haul.

In this episode, I cover the benefits of regularly reviewing these 5 financial reports: accounts receivable, profit and loss by income, profit and loss by your top 10 clients, budget versus actuals, and a comparison balance sheet.

In this episode, you’ll also hear:

• Monitoring and managing cash flow
• Making informed adjustments to your business
• The value of reviewing financials on a regular basis

Must-listen moments:

[00:04:27] It helps you to assess client relationships, identify upselling opportunities, and it mitigates the risk that comes with being dependent on a small number of clients.

[00:06:34] Monthly reviews are common, so you can make timely adjustments and keep the business on track to meet your financial goals.

[00:08:26] You can review them frequently, and the frequency is dependent on what you decide and what your company needs to happen. And it can be adjusted based on your size, based on your goals, but consistent monitoring is what is going to help you make good decisions about your business.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

Podcast audio/video editing and show notes by http://www.podcastabundance.com/services

The only way a business survives is with profitability, and to maintain profitability business owners must routinely examine finances with specific indicators to ensure they are on the path to success.

In this episode, I review which financial metrics keep businesses on track, how clear key performance indicators support long-term growth, and why it’s crucial for business owners to consistently monitor finances.

In this episode, you’ll also hear:

• Fundamental financial metrics
• Measuring key performance indicators (KPIs)
• Proactive approach to reviewing financial statements

Mentioned in this Episode:

Tally Street - https://tallystreet.com/

Must-listen moments:

[00:01:20] These KPIs, these financial metrics tell you that you're still on the road, that you're still going in the right direction. It can also help you identify some challenges that are coming up.

[00:08:57] Are you going to look at it monthly, weekly, quarterly, yearly? Or maybe you look at all of them. It is really helpful to continue to monitor these KPIs and monitor them regularly.

[00:10:26] By regularly monitoring these KPIs, you can gain comprehensive understanding of your business, your financial health and the performance, and it helps you to stay on track.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

Podcast audio/video editing and show notes by http://www.podcastabundance.com/services

Understanding the financial health of your business is vital to its long-term success and sustainability.

In this episode, I define what financial literacy is, different ways to invest in your financial literacy, and why financial literacy is a superpower for you and your team.

In this episode, you’ll also hear:

• Benefits of financial literacy
• Resources to increase financial literacy
• Financial reporting and training for employees

Must-listen moments:

[00:00:50] Financial literacy is a superpower. It can empower you to make informed decisions, navigate challenges, and drive success in your business.

[00:07:27] Seek mentorships, having a mentor has been proven to increase the success of a person or a company.

[00:12:48] The last thing that you can try, once you start to understand your financials, is share that information with your team. Extend some training to your team. Empower them to understand the financial implications of their roles.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

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Some believe you must spend money to make money, but that doesn’t give business owners free reign to rack up debt for business expenses and still expect to turn a profit.

In this episode, I explore the pros and cons of incurring debt and why a strategic approach to debt management aligned with your business goals is key to sustainability.

In this episode, you’ll also hear:

• Identifying good debt vs. bad debt
• Managing debt with intention
• Creating a realistic repayment plan

Must-listen moments:

[00:01:18] But the difference between a good debt and a bad debt is that a good debt is incurred for strategic investments. That means that you are looking to get debt that is going to make you money, not debt to pay down expenses.

[00:02:44] Before taking on any debt, you really need to critically assess whether the expenditure contributes to the business's growth and sustainability.

[00:07:25] Try to manage this debt and get it down to a lower interest rate, lower payments, something that makes it more manageable for you.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

Just as forecasts for daily weather help us prepare for ever-changing temperatures, financial forecasts allow small business owners to make informed decisions in an ever-changing market.

In this episode, I emphasize how financial forecasting helps predict where your money is going while keeping your company moving in the right direction.

In this episode, you’ll also hear:

• Anticipating income and expenses
• Determining resource allocation and ROI
• Tools for forecasting and reviewing financials

Must-listen moments:

[00:02:32] There might be something more that you need to have, and this way you can strategically allocate these resources, money, people, so that you will be able to take advantage of these situations when they arise.

[00:03:38] Whether you're providing a new service, or you're going to do a new product launch, you can estimate the revenue and expenses that are associated with this new adventure you're going on and see if it's worthwhile to do.

[00:06:48] The other thing about financial reporting, this forecasting that is done, is you have to regularly review it and adjust it. It is not a set it and forget it.

Visit our website and click on the Let’s Talk button: http://www.firststepsfinancial.com

Reach out to Alisa: Alisa@firststepsfinancial.com

Connect with us on social media!

FB - https://www.facebook.com/FirstStepsFinancial

IG- https://www.instagram.com/firststepsfinancial/

LinkedIn -https://www.linkedin.com/company/first-steps-financial/

Podcast audio/video editing and show notes by http://www.podcastabundance.com/services