I had the honor of being a guest on an amazing and resourceful podcast "Honest Ecommerce" hosted by Chase Clymer.

If you haven't listened before, I highly recommend it. Honest Ecommerce is a weekly podcast, community, and endless resource for ecommerce store owners and managers who are focused on continued wins.

In the episode we discussed:

• The Financial Success Formula

• When to Raise Your Prices

• How to determine the financial health of your business

And more…

You can listen to the full episode here, enjoy!

---

Join us in the Profitable Food Business Community where we're talking Shipping Offers, Product Bundles + Discount Strategies for a Profitable Holiday Season!

If you haven't yet, complete your Profit Assessment to get a clear understanding of your numbers and make informed financial decisions as we head into the holidays. Learn more here.

---

About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 8 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Have you heard business coaches say things like… 

“Cutting out your lattes and brunch isn’t gonna suddenly increase your savings account. Instead, I want you to recognize your ability to earn a whole heck of a lot more.”

It’s true that cutting out lattes won’t suddenly increase your savings… but cutting out those lattes (like getting rid of unnecessary expenses in your business) might be a good idea if you’re struggling with cash flow. 

For the record - I love business coaches, and have one of my own. But as a financial consultant, I want to assure you that understanding + controlling expenses, and striving to earn more revenue, are not mutually exclusive

We've been taught to believe that bigger is better, that selling more is the main objective, and that at a certain point all that revenue WILL result in profits. But it's simply not true.

If your million dollar business has million dollar expenses, hitting that sales goal doesn’t mean anything.

Stories of start-ups with tons of funding and BIG sales numbers that never turned a profit are not uncommon.  Emerging food businesses forced to close their doors despite having amazing products + ravenous fans is the primary reason I do this work! 

As CPA Melissa Houston and I discussed in Episode 2 of The Good Food CFO Podcast…

“A 1% savings in one area of your business

can amount to a lot of dollars on your profit line... 

When you know that, and you can implement a small change that creates that 1% savings, the results can be really, really big.  Making small financial changes can really add up!” 

BIG revenue does not mean business longevity. 
Consistent profitability + financial sustainability does.
And that comes from understanding and controlling your costs now, and as you grow. 

If you’re ready to take the next steps toward understanding your numbers, gaining confidence in your financial decision making, and achieving consistent profitability we have tools + resources to help you do it.

1. The FREE Profitability Roadmap will help ensure that you’ve got a solid financial foundation in place.

2. The Financial Success Formula Program will help you understand your business financials, see the road to profitability, and create the Profit Plan that will help you get there.

And of course, the Profitable Food Business Community is always open! 

---

About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

By now you know that the first step in building your most profitable food business is getting a solid financial foundation in place.

Still Working to Build a Solid Financial Foundation?

Or maybe you’re not quite sure what building a financial foundation entails?

Click here to download the free Profitability Roadmap.
It’ll help ensure you have each important pillar in place and are ready to move on to maximizing your profitability.

Got your financial foundation in place?

Great! The next step is to carve out 1 hour per month (yep, that’s it!) to work through the 4 steps for maximizing your profitability.

4 Steps for Maximizing Your Profitability:

1. Get Timely + Accurate Monthly Financials

Your Bookkeeper should provide you with completed financial reports by the 7th of each month, for the month prior. This allows you to see how your business is performing and make timely business decisions.

If you’re doing your bookkeeping yourself, it is imperative that you hold yourself accountable to sitting down at the end of each month to input your financial data and then review your essential financial reports.

2. Create a Profit Plan

Much like a budget, a Profit Plan lays out your business financials for the next 12 months and helps you stay focused on achieving your Financial Success Formula - the revenue goals and cost targets that will help you achieve maximum profitability. You can get detailed in your plan, or just start with the 4 key food business metrics.

3. Track Your Actual Outcomes vs. Profit Plan

Each month, when your financial reports are available, update your profit plan so you can see how your actual revenue, costs and profitability compare to the goals you set.

4. Identify + Implementing Key Strategies

The information in Step 3 can offer amazing insight into how your business is performing and where to focus your attention in order to achieve your business and financial goals.

For example...

• Are your costs on target, but sales lower than projected and affecting profit dollars? You know to focus on growing sales.

• Hitting your sales goals, but your labor costs are too high? Focus your attention on ensuring your labor is allocated correctly and that there are no bottlenecks or backlogs in your workflows that are driving up costs.

• Food Cost % higher than you hoped? Tracking your food costs, or implementing a budget for your purchasing team may help you reach your goals.

Remember, you don’t need to be a financial wiz to build a profitable food business. And I’m here to support you in your work!

The Financial Success Formula Program offers our custom Profit Planning template and hands-on workshops, plus daily support and monthly coaching calls to help you hone your CFO skills.

---

About the Author: Sarah Delevan is a Food Business Financial Consultant + Freelance CFO with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

“I wish we could never ever see numbers so the creativity flows without the annoyance of the other side of the business..."                               

Do you ever feel this way? 
There is a very good chance you did not start your food business to focus on numbers.

No, you got into this because you're passionate about food and beverage, making delicious products and CREATING.

But the numbers are there and the numbers are important.
How many times has wondering about the state of your finances caused so much stress and worry that it actually caused a creative block? 

Here’s the thing: LOOKING at the numbers FREES you from the numbers.

When your food business financials aren’t in order your mind is ALWAYS on money.  Worrying, wondering, constantly checking in on your balances and your sales numbers … 

When you slow down and fully understand your numbers you become informed and empowered. 
You can implement systems that help your business thrive financially - without constant attention - and there is only a need to look at your financials once a week, or even once a month!  

You know what’s going on, you feel in control, and creativity starts to return. 

This is a transformation I see ALL the time.  

The freedom to be creative in your business comes when you embrace the numbers.

building a solid financial foundation is the first step.

Download the Profitability Roadmap + Checklist to ensure you’ve got a solid food business financial foundation in place, so you can understand your numbers and start building a more profitable food business!

---

About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of The Profitable Food Business program. To learn more about Sarah and opportunities to build a more profitable food business Click Here.

I get asked all the time…

How do I calculate the right price for my products?
What’s the right target number for my Cost of Goods Sold?
How can I make sure that my food business is profitable? 

My answer...

Find Your Financial Success Formula!

No two CPG Brands, Wholesale Businesses, Manufacturers, Caterers, or Meal Delivery Businesses have the same ingredient costs, labor costs, or operating costs. 

Your products may be similar.
Your suppliers could be the same.
But, your Financial Success Formula is all your own.   

…it is the key to helping you find financial success in your food business. 

---

Want to learn more?

Tune in to the most popular episode of The Conversation Series to learn:

• What the Financial Success Formula is

• How to identify YOUR formula

• Why knowing your formula is critical to your success

• How you can use your formula to price your products, set budgets + more

Click here to listen now. 

---

Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.