Your Financial Reports are meant to summarize your food business financial data and present it to you in a meaningful way.

financial reports should provide value to you, and help you make key strategy + business decisions.

For example, you should easily be able to answer the following just by reviewing your Profit + Loss Statement (aka Income Statement):

• Which line of business is bringing in the most revenue?

• What does it cost to package + ship your online orders?

• What are your total labor costs with taxes, benefits and fees included?

If your Profit + Loss, or Income Statement, isn't providing this type of valuable info about your food business (without having to do side calculations or dig for additional data) you're working with what I call "Basic" financial reports in need of a revamp.

Still not quite sure if your financials are in need of a revamp?

Here are 3 signs that they your food business financials
need a revamp…

#1 - All of your sales are lumped into one line item

Even though you sell online, wholesale and at farmer's markets... if you've got more than one revenue stream you should see individual income data for each of them.

#2 - All of your Cost of Goods Sold are lumped into a single line item

I know you've got more than one COG!

#3 -Your Expenses are shown in a simple list - likely in alphabetical order

Accounting software includes a "standard" list of common business expenses. Categorizing your expenses to fit into this simple list will NOT help you understand how your business is performing and build a profitable business.

Your expenses WILL be unique, and your financial reports need to reflect that.

Does this describe your reports?

The good news is that you have a say in what your financial reports look like, and these things are easy to change!

When your reports are designed for YOUR business and are working FOR YOU, you can count on them to show you how your business is performing, set meaningful goals + get to work on building a profitable food business!

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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, 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.

Building something strong and sustainable requires a solid foundation, right?

What does the foundation of your food business look right now? 
Does it need strengthening?

I’ve learned that in business, it’s NEVER TOO LATE to start building that foundation. 
It’s the work I’m passionate about and I invite you to do!

Here are three things you can do to create, and solidify, the foundation of your business so you can achieve financial sustainability and profitability.

1. Record your financial data.

Yes, ALL OF IT.
Your revenue, your expenses, your costs. Make sure to update this information monthly.

2. Track your key metrics

Your key metrics include your revenue, cogs, operating + labor expenses, and review them as a percentage of your revenue. 

Check out my IGTV video on how this small change causes a big impact!

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3. Find your Financial Success Formula

This formula helps you see the revenue and cost target goals specifically for YOUR business. 
Watch The Conversation Series on Finding Your Financial Success Formula!⠀⠀⠀⠀⠀⠀⠀⠀⠀

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You started with your dream and are working hard to create a successful business.
Your hard work + a strong foundation will lead to profitability and sustainability so that you can continue to do this for years to come! ⠀⠀⠀⠀⠀⠀

find more details + support in building the foundation for a profitable food business in the the free Profitability Roadmap,

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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 grow a more profitable food business Click Here.

When I work with food biz owners 1-on-1 and inside the Financial Success Formula Program, the FIRST thing we do (after making sure they’ve got a solid foundation in place, of course) is focus on achieving financial sustainability + boosting profitability WITHOUT increasing sales. 

We do it by focusing on what’s happening INSIDE the business and…

• Finding profit leaks

• Ensuring their products are priced right

• Identifying inconsistencies within their business

If you’ve ever asked yourself, “WHERE is our money going?!”  or been surprised by big losses, or tiny profits despite growing sales, you’ve probably got at least one of these things happening in your business. 

And it’s holding you back from achieving your financial goals. 

Here are 3 ways to improve your profitability without increasing sales:

1. Find + Fix Profit Leaks

Simply put, profit leaks are expenses in your business that are unnecessary, excessive, or that you are simply unaware of. 
Fixing these is the EASIEST and quickest way to boost the overall profitability of your biz. 

Some examples include:

• Subscriptions that you pay for but never use

• Insurance premiums that jumped and you didn’t notice because it’s on auto-pay

• Bank fees you didn’t know you were being charged

• Over-ordering of inventory or ingredients, or inefficient purchasing.  

2. Price Your Products to Hit Your Target Food Cost Percentage

A lot of people focus on the profit margins of their products… that’s helpful for ensuring that your products are profitable, but not your business - that’s a very important distinction! 

If you’re interested in the latter, and not just having profitable products, take a few minutes to determine the food cost % for each of your products.  If it’s higher than your food cost target the product is hurting your profitability.  From here you can determine if cost reductions or a price increase are the right next step to reach your targets. 

3. Find + Eliminate the Inconsistencies in Your Business

What’s an inconsistency?  Here’s an example: You had a high sales month (exciting!) but your hourly labor costs jumped from they typical 25% to 35% of revenue for the month and ate up 10% of your profits (how defeating!). This jump in spending is an inconsistency and it can happen with any of your variable costs. 

When you experience random or regular inconsistencies in your business it can wreak havoc on cash flow and will prevent you from achieving financial sustainability + consistent profitability. 

Identifying + correcting inconsistencies in your business is a process, but it makes the biggest and longest lasting impact to your bottom line.   


Ready to boost your profitability?!  
I’m excited to hear what you find + how changes will impact your business! 

Need some help identifying your Target Food Cost % or knowing if there are inconsistencies in your business?  Visit our website to explore the multiple services we offer to make your good food business a profitable one.

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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 and the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to build a more profitable food business Click Here.

During a recent Q+A Session, I was asked the following question…

“I’ve never set any sales goals for my business… it is turning from a little money on the side to a real business, and I don’t want to set goals that will burn me out, but I would LOVE  to make more money. 

I made just over $35,000 in sales last year, If I set a $100,000 goal for the next 12 months, part of that gets me excited - the other part thinks I’ll burnout if I attempt it... So I keep shifting the goal and not actually landing on any number. I just keep doing what I’ve been doing…
and I’m NEARLY breaking myself.

What is the strategy for setting meaningful and realistic sales goals?”

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Have you struggled to set meaningful sales goals for your business?

Struggled to really work toward a sales goal that seems “plucked” from thin air?

Or maybe you’ve exhausted yourself to achieve your sales goals in the past, but they never produce the financial outcomes you desire.

This was my advice to this business owner, and to you, if you need it…

Far too often business owners work tirelessly to reach a sales goal and in the end have nothing to show for it.  No increase in pay for themselves, no new team members to help them grow, no profits to reinvest. I don’t want that for you!

When we talk about setting goals, even revenue goals, the focus needs to be on the OUTCOME - personal + financial.

The strategy I am sharing today is intended to release you from the  “Do More” and “Sell More” mentality that we all often find ourselves in and will help you NOT BREAK yourself or burnout while achieving your profit goals.  

Here are my 3 steps for setting the right sales goals for your biz:

1. Start by looking at your COSTS.

   Get an understanding of what your break-even sales number is.
   This is your absolute minimum sales goal - a starting point!
   

2. Get clear on what YOU want out of your business. 

   Is it to pay yourself $100,000 a year?  
   Hire a new team member so you can take some time off? 
   Maybe you want to reinvest a certain amount so you can expand into new markets because you’ve got a goal to sell the biz in a few years! 
   
   Whatever you want out of your business in the next 12 months (and it doesn’t have to be just one thing!) attach a financial value to it. 
   When you’re clear on WHAT you want, and the dollar amount attached to it, you can determine exactly what you need to get there.
   

3. Set Your Sales Goal

   Your sales goal is the number of sales you need in order to achieve what YOU want out of your business.
   It is meaningful, valuable, and you can create a strategic approach to reaching it.

CLARITY is key. 

When you know exactly where you are headed and why, you can create a plan, track your progress, and achieve your goals!

Want to dive deeper into this goal-setting strategy?  Watch the video above.
Need a little extra help sorting out the numbers? The Sales Goal + Profit Projection Calculator inside the Financial Success Toolkit can help!

Once you’ve set your sales goals for your food business I hope you’ll share them with me and the Profitable Food Biz community. 
We are here to support you + cheer you on! 

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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 and the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

I have been working to bust the “30% Food Cost” and other ‘industry standard’ MYTHS for years. 

Good news: progress is being made and the result is an increase in profitable food businesses all across the country! 

Why am I so passionate about this? 

Simply put: Industry Standards are a danger to your profitability, period. 

Partially because the “standards” are for restaurants, NOT CPG Brands, Meal Delivery, Catering or Wholesale businesses. Partially because they are old and outdated. Mostly because industry standards are taken out of context and not incorporated into a holistic approach to building a profitable food business. 

That’s right, I said it. HOLISTIC. 

The parts of your business don’t operate in a vacuum...

...They are all interconnected
…Each must hit its goal
...They must work together to produce a profitable outcome.

Your business must be viewed as a whole. 

30% Labor Costs might be the right goal for your business! 
IF your other costs total less than 70%.
If they total more, hitting a 30% labor cost will result in monthly losses instead of profits.

One member of the Financial Success Formula program joined with a 25% labor cost and struggled with cash flow + financial sustainability

Another hits 38% labor costs and is consistently profitable! 

Let go of industry standards and find the RIGHT MIX of revenue + cost targets for YOUR business. 

READY TO GET STARTED? 

Get the control and confidence you need as a business owner and get your Profit Assessment to identify WHERE your business is on the road to profitability, and the next steps you can take to find the right targets for your business.

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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. and the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to grow 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. 

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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. 

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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.

I know… You want your prices to be competitive. 

You may be thinking...
They are a successful business at the top of their game, so if I model what they are doing I’ll be heading in the right direction. Right? 
Wrong. 

NOTHING is as rosy and perfect as it looks on the outside.  
Take it from me - there are lots of  “successful” businesses with awesome products, killer sales numbers, and not a penny of profit to show for it. 

Pricing your products based on what the “top” brands in your market are doing puts you on the fast track to financial struggle. 

To achieve long-term, sustainable financial success you need to price your products right for YOUR business. 

Here’s a little story for you…
New clients of mine recently pivoted their business model to offer weekly meal delivery service. 
The changes to their business model were quick - they needed to create menus, price them, build a new webpage and start promoting FAST. 

To set prices they looked at other businesses making the same pivot and mimicked the pricing of the company that everyone respects and admires in their industry….

“We saw their pricing and figured they know what they are doing (they are super successful) let’s match their pricing and we should be good.”

Well, two weeks later that successful company was raising their prices!  
The message that sends is that they DIDN’T have it all figured out. 
They were likely losing money at the low price point they set and needed to make adjustments. 

Now my clients were seeking help to set prices that were right for their business, and stop chasing what others were doing. 
Smart Move! 

The time and money lost over the first few weeks can’t be recovered, but corrections can be made. 

Pricing your products based on the competition, your gut, or an industry-standard is one of the biggest mistakes I see food business owners make. And it costs you a lot of time and money. 

But, don’t feel bad if this is a mistake that you’ve made or are making. 
It’s an easy fix and I’m here to help you get it right. 

Building a financially sustainable and profitable business starts with knowing YOUR Financial Success Formula.  

If you’re eager to learn more…

Visit our products page here

AND OF COURSE, THE PROFITABLE FOOD BUSINESS COMMUNITY IS ALWAYS OPEN! 

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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 and is the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

You know that financial reports can be extremely valuable tools for building + operating a profitable food business.

But, be HONEST…. 

When you review your P+L Report do you think…
...What does it all mean?
...Is this SUPPOSED to be helpful?
...Do I not know how to read my P+L?!

Here’s the truth: It’s not you!  It’s your financial reports. 

Most business owners are working with very BASIC financial reports that don’t serve their needs, aren’t helpful in understanding their business, and worst of all, may actually be misleading!
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The good news is that you have a say in what your financial reports look like.

When your reports are designed for YOUR business and are working FOR YOU, you can count on them to show you how your business is performing, set meaningful goals + get to work on building a profitable business! 

Here are 3 Signs that Your P+L Report is in Need of a Revamp:

1. All of your sales are lumped into one line item ... and you have more than one revenue stream⠀

2. All of your Cost of Goods Sold are lumped into a single line item called “Cost of Goods Sold”

3. Your Expenses are listed in Alphabetical Order⠀

Sound familiar?  Want to learn more?  
Watch my video above and don’t forget to subscribe to my YouTube channel to for more valuable information that will get you on the path to a profitable, successful food business.

Remember, financial reports can be extremely valuable tools for building + operating a profitable food business - but only if they're serving up the information you actually need.

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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 grow a more profitable food business Click Here.

Food Costs play a BIG role in the success and profitability of your food business. 

But time and time again I meet business owners who have…
...cost out their products for the launch of their business and never revisit their calculations again
...never cost out their products 
...not paid attention to what their Food Costs are month-to-month. 

They have no idea what their TRUE food costs are!
And the result is low profit margins, inconsistent financial outcomes, and cash flow trouble. 

Here’s the GOOD NEWS:
Understanding your food costs, setting the right targets, and hitting them consistently isn’t hard, and you can get started TODAY.

In this video I share the #1… only takes a few minutes… BUSINESS CHANGING thing you can do today to Better Understand + Start Controlling Your Food Costs.

It’s the very thing that helped one of my program members identify that her Food Costs were 60% - that means 60% of revenue went directly to making her products, and just 40% was left to cover operating + labor expenses.  It became easy to see why she was experiencing consistent losses.

Another member discovered he had average Food Costs of 93%! He was floored, and truly had no idea!

A third member discovered his food costs ranged from 18-35% during any given month and the large swings were playing a BIG part in his cash flow issues

Follow the simple 2-step process to gain a better understanding of your food costs, start saving money and improve your profitability!

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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 grow a more profitable food business Click Here.

No two food businesses are alike… BUT the financial struggles you experience and the solutions to those struggles are very much the same. 

There is no doubt about it - you WORK HARD. 

But if it feels like no matter how hard you work, 
no matter how consistent your sales are, 
or how much your sales grow...

...You aren’t achieving the financial results you desire
...You’re anxious about the day to day availability of money to pay your vendors, your team or yourself
...Or you simply don’t know what the right next step is for your business

You are NOT ALONE.  

And you don’t have to figure it all out on your own.

Together, our conversations will help you identify SOLUTIONS to your struggles and implement STRATEGIES so you can start to see FINANCIAL IMPROVEMENT.

I invite you to:

• Join other food + beverage business owners in THE PROFITABLE FOOD BUSINESS COMMUNITY and meet me on Instagram

  
  Listen in on educational talks + conversations with food business owners in The Conversation Series, where we talk about all things related to food business financials and building a profitable business.

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. 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.

You do NOT have to be a financial wiz to build a profitable food Business!

If you have these 3 key ingredients in place you can achieve financial success.

In this video I'm sharing:
- 3 Key Metrics to Know + Track for Your Business
- The Importance of Setting Cost Goals - it's not ALL about sales!
- My #1 Strategy for Achieving Your Food Business Goals

Share your takeaways and next steps for your business in the comments.

If you liked this content join me on Instagram for weekly videos.
Or hop on the mailing list (you can sign up in the footer) and have helpful resources delivered right to your inbox!

AND OF COURSE, THE PROFITABLE FOOD BUSINESS COMMUNITY IS ALWAYS OPEN! Ready to dig into the work?

Download the FREE Profitability Roadmap.

Raise your hand if…

...you’ve got growing or steady sales, but don’t have the profits + cash flow to show for it

...your financial outcomes vary month to month but you aren’t exactly sure why

...you’re working HARD and are ready for a clear path to profitability and the confidence to delegate your key tasks. 

Got a hand up? You’re not alone.

As food businesses grow + change, financial outcomes do too!
And it takes some work to get things back on track.  

If you start with these 3 key ingredients you’ll be on your way to consistent financial outcomes, financial sustainability + profitability in your food business. 

3 Key Ingredients for Food Business Financial Success:

1. Know Your Numbers!

   I call it your financial formula: the average food cost, operating cost + labor cost for your business, and what they total when you add them.
   It sounds basic and it is - but most business owners don’t know their numbers and as a result, they struggle financially for longer then they need to!
   

2. Set the RIGHT Goals

   All food biz owners want more sales - that’s a no brainer! But if you want more sales to equal more profits, you MUST have the right cost targets in place + you must hit them consistently, week in + week out. 
   

3. Inspect Your Expectations

   After you set goals, you’ve gotta track your progress and continue working to reach them.  
   Inspecting Your Expectations is the process of asking yourself and/or your team questions like…
   
   “Do we have all the tools, resources, and information needed to achieve this goal?
   “What prevented us from achieving our goal this week?  What would help us be successful?”
   “Are there breakdowns in communication that are preventing us from achieving this goal? Where are they and how can we improve them?”

Want to learn more? Click here to watch my recent video

Ready to start doing the work? The first step is to download my free Profitability Roadmap.