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.

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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.

You likely don't need me to tell you that the more cash you've got in your business…

...the healthier it is
...the more likely it is to survive seasonal sales dips, unexpected events, etc.
...the greater ability you have to invest in its growth.

If the events of this year have you struggling to maintain steady cash flow in your business, I've got some info that may be helpful.

Here are My 4 Tips for Improving Your Cash Flow:

1. Make Sure Your Products are Profitable

This may seem like a no-brainer, but many businesses are selling products that have little to no profitability and it’s causing the overall business profitability to suffer. With limited or no business profitability there is no cash to flow in your business!

2. Speed up the rate at which your revenue turns into cash (Accounts Receivable)

Direct to Consumer (DTC) brands have a quick sales -> cash rate. Customers are either handing over cash at the time of purchase, or a 3rd party payment processor is depositing it in your account in just a few days.

Wholesalers and Manufacturers don’t have it so easy, and can have terms as long as net-60!

Exploring options for paid-in-full discounts or 50/50 payment discounts may help you turn your sales into cash more quickly. Just be sure you know how the discount incentive will affect your overall profitability.

3. Slow down the rate at which cash leaves your business (Accounts Payable)

When was the last time you requested a change to your payment terms?

Many new and small businesses are required to pay COD, or are given short net-10 or net-15 terms when they’re just getting started, but after consistent on-time payments you are eligible to request them.

If you’re working with a new vendor make sure you are clear on your starting terms and when you can request an extension of terms - then make those on-time payments, set that calendar reminder, and follow up for longer terms!

4. Look Ahead with Financial Projections

Financial Forecasting is beneficial for LOTS of reasons. One of them is seeing and understanding how your cash flow will change over the next 6-12 months based on seasonal sales trends. From there you can make cash spending vs. cash saving decisions today that will prevent you from being cash-strapped when sales slow down.

Having a long-term cash flow projection is also helpful when unforeseen events happen in your business, or on the planet, as they did this year. In just a few clicks you can see exactly how long your cash will last, how much you will need to rely on credit, or how much your small biz loan request should be for.

Wishing you all the positive cash flow!

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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.

Earlier this year when the pandemic had just forced us all indoors and flipped our worlds upside down, I turned to yoga in hopes of finding an indoor workout that would also (fingers crossed) help relieve some of the stress I was feeling. 

To my surprise and delight the daily yoga practice produced sore muscles (the good kind), a stress release that I could literally feel about 15 minutes into a yoga flow, and ideas that would help me in my business! 

Somewhere around month two the teacher posed the question,

“Where are you working harder than you need to?”   

At that moment I was in a plank pose trying to be mindful of the straightness of my neck and my spine, attempting to lift my knees up (whatever the heck that means) and actively push away from the ground while keeping a slight bend in my elbows... and she was asking where I was working harder than I needed to?! 

Then she said… 

… relax your face, that’s not helping you hold this pose any better.  And she was right. 

… relax your shoulders, that’s not helping you hold this pose any better.  And she was right.

… take a deep breath and realize where in your body you are exerting energy that you don’t need to in order to achieve the desired outcome. 

Holy crap. 

I took this question “off the mat” and thought about it as I went about my daily tasks. 

It started out with me realizing where I was holding tension in my body..

then transitioned to me noticing the actual energy that I was feeling inside when I had a long to-do list, was running behind schedule, or doing something out of my comfort zone - feeling anxious and like I needed to hurry wasn’t actually helping me move faster or perform better. I could let go of that anxiety. 

Then I applied the question to my business. 

It helped me re-focus on my goals and put my efforts toward the things that would have the biggest impact.

Asking that question gave me clarity to see what is mine to do, what could (and should) be automated, what should be delegated, what could be put on hold until the future, and what I could let go of completely.

And now I want to ask you…

Where are you exerting energy in your food business - mentally or physically - that is not ACTUALLY helping you reach your goals? 

Where are you working harder than you need to? 

Share your answer in the comments below, or join us in The Profitable Food Business Community!

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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 recently read “The Top 10 Mistakes That Keep Women Entrepreneurs From Scaling to $1 Million” published on Women / Entrepreneur.

Not surprisingly, several of the mistakes on the list are related to money + finances and offer important takeaways for good food business owners (whether you identify as a woman or not...and regardless of your personal revenue goals).

Here are the money-related mistakes from the article, with a few of my added thoughts specifically for food business owners:

Mistake #6: Insufficient financial know-how

“We don’t need to have finance degrees or MBAs to run our businesses, but we do need to educate ourselves in order to create a cash runway, steward our money better and effectively raise capital when necessary.”

MY THOUGHTS:
You do not have to have a financial degree or an MBA to run your business, and you don’t need to shoulder all of the financial responsibilities, but you MUST educate yourself on the financial realities of your business. Some must-know info includes...

• What your cash flow / cash runway looks like

• How profitable your products and your business lines are, and

• How the decisions you make will affect your bottom-line

Mistake #7: Not having a cash runway

...women are twice as likely as men to shut down their businesses because they run out of cash. You can better avoid this issue by working with an advisor on your cash flow projections or finding a great accountant who can walk you through your numbers. Don’t be afraid to ask for help or say you don’t understand, and be sure to look at what you owe and what is owed to you on a weekly basis so you can have a healthy cash balance.”

MY THOUGHTS:
Agreed! I’ll add that you should also be aware of your vendor terms. Many new businesses are required to pay COD, or are given short net-10 or net-15 terms when they’re getting started, but after consistent on-time payments you are eligible to request them.

If you’re working with a new vendor make sure you are clear on your starting terms and when you can request an extension of terms. Then make those on-time payments, set that calendar reminder, and follow up for longer terms!

Mistake #9: Improperly tracking marketing spend

...marketing is one (of the) biggest expenditures for fast-growing companies. There was a time at Little Pim where we didn’t track where our customers were coming from and didn’t know which marketing channels were performing and why. Eventually, we started keeping a closer eye on our marketing spend — that way, we were able to avoid falling into the money pit that marketing can be and begin getting excellent ROAS (Return on Ad Spend). Figuring out which marketing channels work for you and rigorously tracking your spend is a key part of scaling up.

MY THOUGHTS:
It’s no secret that marketing is an important part of growing your food business, but not having a strategy and not tracking your spend can lead to inefficient spending and take funds away from other important investments.

I had a great conversation about this very topic with Marketing Strategist, Christie Lee of Nourishing Foods Marketing, that will be airing on the Good Food CFO podcast very soon! Click here for updates on the podcast launch, and this episode.

Interested in reading more?
Find the full article on Women / Entrepreneur here.

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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.

What does slowing down REALLY look like?

Here are a few of the ways that my clients + program members have been slowing down in their businesses:

• Recipe costing (with actual ingredient costs) BEFORE launching a new product.

• Calculating how various discount percentages (15% vs. 25%) for a “bounce back” offer will impact the bottom-line, THEN choosing the option that is a win for both customers AND the business.

• Considering all ingredient sourcing and packaging options for a new (big!) foodservice account to hit the client’s needed price point AND to be profitable.

• Identifying packaging + shipping costs to understand the financial impact of offering free or discounted shipping, THEN implementing the offer that meets customer expectations and maintains profit margins.

All of these examples are situations where the business owner slowed down to look at their numbers and make an informed decision, rather than rushing to get that next sale.

I know what it’s like to launch an incredible online campaign that generates $20,000 in monthly revenue, only to experience $25,000 in monthly losses because of unforeseen shipping + increased labor expenses...

I want you to have BIG sales.
But I REALLY want you to have big profits.
Slowing down makes all the difference.

P.S. Need some support in slowing down, or a little guidance on how to make sense of the information you need to consider for your next important decision?

Join us in the Financial Success Formula Program for daily support + Monthly Coaching Calls. Click here to learn more.

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About the Author: Sarah Delevan is a Food Business Financial Consultant + Freelance CFO with over 7 years 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.

Are you considering taking on debt in your food business?

want some advice on whether taking on debt is a good idea?

I often get asked if taking on debt is bad for food businesses, and like so many things in business… IT DEPENDS. 

Every business is unique, and business situations are unique. 

But there is a universal checklist that all business owners can use to help you make the right decision.

If your goal is to create a sustainable business that minimizes risk and grows profitability, and you’re considering taking on debt to make a purchase, or opening a line of credit, this checklist is designed just for you!

#1 Determine if the debt you’ll be taking on is considered to be “Good Debt” or “Bad Debt”

Good Debt is considered to be an investment in your business future, and typically is an investment that will retain or increase in value over time. 

Bad Debt is investing in something you don't NEED, doesn't help you build your business, and loses value over time. 

For some decisions the answer will be cut + dry.
Others (like purchasing a vehicle) are more nuanced. 

To dive a bit deeper into Good Debt vs. Bad Debt, check out this blog post from CPA Melissa Houston. 

If your reason for taking on debt falls into the Good Debt category, by definition move on to #2

#2 Remember Your Business Objectives

Is your food business objective to Increase Sustainability or Profitability? Increase Efficiency? Grow Sales in a Particular Business Line?  

Getting clear on what you want or need to achieve in your business to be successful allows you to identify the right goals to focus your attention on, as well as the actions, activities and efforts that will help you achieve your objectives, and the ones won’t.  

Remembering your business objectives and top 3 goals often makes decisions that seem “big” or difficult quite easy to make. 

#3 Determine if the Debt will move you closer to your business objectives

ASk yourself: WILL this purchase, or will access to this line of credit be used to purchase, things that will move me closer to achieving my food business objectives?

When answering this question it is important that you are honest with yourself and that you do the work to identify real problems that must be solved, rather than symptoms of problems. 

For example, If your business objective is to improve profitability, you must get to the ROOT of why the symptom of low profitability is showing up in your business.  Are your sales too low? Are your costs too high? If the true cause is low sales numbers, why are sales low? Is it Lack of repeat business? Lack of audience? Incorrect message? 

Investing in hiring a sales person or team, or ramping up social media + marketing for a product with the wrong message won’t get you the results you desire. 

When you identify the real problems in your business you can ensure that you are investing in real solutions. 

IF you’ve determined that the purchase or line of credit will solve a true problem in your business and move you toward your business objectives, move on to the last step.

#4 Consider the 2nd order consequences of your decision, financially and otherwise for the business 

We can control the decision that we make, but we can’t control what happens after our decision is made.

This step is an incredibly important exercise in considering the possibility of things not turning out exactly as you plan.

It is the step that most business owners fail to consider (including yours truly) that results in financial loss.  

Ask yourself the following questions…

1. What is the up side? 

2. What is the downside? (What could go wrong?)  

3. Can I live with the downside? 

I recommend talking through #2 with someone else, and remind you to consider the monthly + long-term financial impact it will have on your business, particularly if things don’t work out as planned, as well as who and what it will affect within your business + how.  

Weigh the positives and negatives and make a decision based on the information you’ve laid out.  Determine if you can live with (and afford) the downside. 

Decisions like this often feel like they need to be made quickly. 

But I promise you that thinking through this debt decision checklist and taking your time in the decision making process will produce a better long-term result. 

The less emotion and time play into your decision, the better. 

Having a Profit Plan is also helpful in this process and allows you to run various financial scenarios related to your decision.

Visit our website to learn more. 

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. 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.

You’ve got big goals for your food business, I know you do! 

Whether you want to build a local family business, a national brand, or a rapidly growing biz that you can sell in a few years…

The path to reaching your goals, and doing so WITHOUT burning yourself out, involves achieving financial sustainability and consistent profitability. 

What exactly is financial sustainability?

Simply put, it’s consistent cash flow within your business that results in no more worrying about if you’ll have enough money to cover the bills, pay your employees and pay yourself. 

why focus on Profitability? 

Profits are the amount of money leftover after you pay for your COGS, operations and labor.  

You can reinvest them to grow your team, expand your operations, hang on to them so your business has cash on hand during slow months…you can use them however you’d like!  The point is that there is money left over for you to put toward reaching your goals. 

how do you achieve financial sustainability and profitability in your food business?

The way you achieve these things is NOT by doing more + selling more.  It’s by understanding, optimizing and maximizing the financial efficiency of your business.

Looking for a hands-on consulting experience?
Fill out this form and we'll set up a call to discuss your goals and how I can help you reach them!

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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.

You don’t need to recipe cost to build a profitable food business,
but you should…

I know recipe costing takes time... 
that your food costs may be “fine”... 
and that you can be profitable without taking this step. 

Like I said… You don’t NEED to Recipe Cost.  
BUT YOU SHOULD.

The reason is simple: You can ONLY achieve maximum profitability if ALL of your products are priced right.

that means that your products are not just priced for product profitability, but for business profitability. 

Need a reminder on how to price your products for business profitability?

Step 1: Calculate the true ingredient costs to produce your products 
Step 2: Know Your target Food Cost %
Step 3: Bring these two values together to find your perfect price! 

(Step 4: throw away any info you have that tells you to include labor, rent, or ANYTHING else. It doesn’t have to be so complicated!)

True pricing Story...

Early on in my career as a Buyer, we were hitting our target of 30% food costs consistently, and were profitable most months. So my boss didn’t think recipe costing was necessary…

I did it anyway and found that our top-selling items were COSTING US MONEY every time we sold them.  

Getting the products priced right saved us thousands, lowered our overall food cost % and helped us become more profitable.

If you struggle with cash flow or are unsure how to improve your profitability and haven’t done recipe costing, I strongly suggest it. 

There is a lot of confusing, complicated info out there for calculating your product costs.  Trust the above steps and keep it simple.  

You can use a basic spreadsheet, or access the tools I’ve developed specifically for local, seasonal, good food businesses inside the Financial Success Formula program.   Enrollment is always open - click here to learn more! 

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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.

“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!

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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 build 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.