Have you ever started something new?

Have you ever started something new and wondered what it means financially if it does or doesn't work out?

Have you done the work to understand the potential financial upside or downside? 

I ask because I see many clients launching new products without running the numbers.

They don't know how much they have to sell to break even.

They don't know how this product will contribute to their gross margin and if that margin is totally depleted by ad spend. 

They don't know the unit economics. 

I know numbers aren't everyone's first love and I know that good financial decisions are based on good numbers. 

You don't need an accounting degree to do the math. You can rely on your commonsense knowledge of how the world works.

The key thing here is not sophisticated modeling, but just taking the time and running the numbers.

A quick excel sheet or back of the envelope, just something so you can put down your assumptions and test them against reasonableness.

If you add up all your unit costs - the cost to make one product - is that cost low enough to make a decent gross profit?

Your gross profit should be at least 30% if you don't need to advertise, or closer to 50% if you have to pay for ads.

A lot of assumptions are involved in products, and I know if you don't consider them you are left managing chaos. 

Instead, you can move forward deliberately by monitoring your actual performance against what you expected.

This simple step of creating a hypothesis and monitoring results is how we improve our products and profitability, how we become better business owners, and how we grow as people. 

I invite you to start Q2 with intention: 

Intention to dig into your numbers and understand what they mean. 

Intention to grow profitably. 

Intention to learn and grow as an entrepreneur. 

If you are afraid of numbers and don't understand where cash goes in your business, then I invite you to have a conversation with us about our Cash Flow Accelerator Program.

We believe businesses should be profitable by growing their cash in the bank.

We take away the accounting mystery to show you how to look at your cash going forward.

The program will help you get clear on your goals and ensure the cash resources align with your business and personal dreams.

Then we help you develop a road map so you can take massive action to grow your business and yourself as a business owner.

Schedule a call and let's chat about getting started. 

Cyndi