My goal at Profit Mastery is to save small businesses through consistent profit improvement. Along with our stellar profitability course, we’ll be regularly sharing tips, tricks, and strategies from our learnings. Thanks for reading. The ultimate business advice… A week ago, I attended a conference dedicated to business owners, search funds, and investors. There were several…
I’ve briefly touched on my background but haven’t yet shared the full story: my name is Colin and I’m an entrepreneur building a collection of businesses inspired by Berkshire Hathaway. We’re actively applying the Profit Mastery tools in our companies and this experience is a key driver on why we wanted to acquire Profit Mastery. It reminds me of an…
Today we’ll cover a topic near-and-dear to every business owner – unit economics – we love thinking about how much we make on every sale! What are Unit Economics? Don’t be fooled by the fancy term… unit economics are simply the profits you earn on a per-unit, or per-service, basis (think: your margin on the sale of…
If I were to “drop in” on your business today, could you tell me how things are going this week? Most business owners don’t have a formal tool or process for monitoring early warning signs (both good warnings and bad warnings). These “tools” go by many names: KPIs, scorecard, dashboard, balanced scorecard, report card. Queue…
We’re big fans (and users) of Gino Wickman’s EOS (Entrepreneurial Operating System), which outlines a useful framework for business management. I’d highly recommend if you’re in need of a basic structure for meetings, people management, and setting a company vision. What it lacks is a robust financial management structure, or what I’ll refer to as a Financial Operating…
You might see this title and scratch your head, wondering why you’d want to read about turnarounds or business failures. It turns out there are incredibly valuable nuggets of wisdom in these stories. The foundation of any successfully run business is a strategy everyone understands coupled with a few key measures that are routinely tracked….
Can you give a quick and straightforward answer to questions like: If you’re anything like most business owners I know (myself included), then you probably live in a real-life version of whack-a-mole with tasks, details, decisions, and fire drills coming at you daily. I’m sure you’ve heard the phrase (cliché?): work on your business, not in it. Let’s walk through…
There are only 3 ways to convey information: If we rank them from easiest-to-hardest-to-understand, then it probably goes: 1) pictures, 2) words, 3) numbers. So why are we exclusively using numbers to understand our financial position? Enter: pictures. Why this matters? Aside from our inability to decode numbers in general, a single number (or a…
With Labor Day promotions behind us, it feels like a good time to talk about the financial impact from discounts, promotions, and marketing campaigns on your business. It goes something like this: These aren’t necessarily bad strategies. Remember, promotion is one of the “4 P’s of Marketing.” But we typically fail to account for them properly when…
We’ve covered working capital a few times in the past… But today we’re covering probably the all-time most useful ratio when it comes to managing working capital… the Cash Conversion Cycle (CCC). What is it? Your CCC measures how long (measured in days) it takes a dollar of cash to move through your business, from start…