PROFIT FREEDOM BOOK
Use B.E.S.T. Practices – Profit from your Purple:
Book (in reference to the “T” in B.E.S.T. – for Tribe) – Assemble the Tribe: Believe in your Value. Find belonging. Be Different. By Leah JM Dean
Join the tribe and get the introduction and first chapter free https://www.leahjmdean.com/bookoptin
Order the book on Amazon
CHAPTER 2– What is Profit
What most businesses do
Book: Profit First: Transform your business from a cash eating monster to a Money Making Machine. By Mike Michalowicz
Why businesses don’t have it
A great template from the Bermuda Economic Development Corporation can be found here
CHAPTER 3– How to Make a Profit
Manage your Debtors
Book: Collect the Cash: The Sale is Not Complete Until the Money is in the Bank. By: Dee Bowden
You need more revenue than expenses
See the spreadsheet in the download below, and note the last two columns – where a PROFIT PERCENTAGE is added to the TOTAL HOURLY RATE.
Computation of all expenses/count the cost
Spreadsheet for Pricing Labor
CHAPTER 4
In reference to knowing your numbers, as a further note – there are a plethora of TOOLS available for entrepreneurs, many at no cost as well as low cost.
To track Receipts (which is important for those in the US if you are a sole proprietor and tracking business expenses for your schedule C or our business in your tax return, or for business owners that need to keep and track receipts for your records and/or to provide to your accounting professional) – ReceiptBank,
Accounting/Bookkeeping
There are several programs available, the type of business and level of detail you need will help you determine what is best for you, as well as how often you will use the system or if you have professionals handling the accounting/bookkeeping for you. Quickbooks, Xero, Freshbooks, Zoho are a few to consider. Once you begin looking at those others will come up in your google search that will assist you. Consider your line of business and if there are any specific needs (like the need to interface inventory software or point of sale software etc. if that is needed.)
CHAPTER 5
You should consider reviewing your numbers via a quick and easy way to see where you are. One way is to use a financial dashboard, similar to how we use a dashboard in a car where we view the gauges at a glance. You can use preset dashboards, or develop your own. You can check on line and there are formulas provided for you to compute the ratios and figures for the dashboard.
There are also various options for software that will compute the ratios and display them in easy-to-read charts, graphs etc. If you use Quickbooks Online as an example, there are some key figures that are provided in a dashboard type format that are available when you log in – based on the information that has been entered. SuiteDash is also a program to consider in regard to dashboards.
Examples of KPI’s (Key Performance Indicators)