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