Know Your Numbers

Know your numbers.

So one of the other things that I teach a class is Know Your Numbers and Grow Your Business. One of the things that people don't often understand. I teach people how to read their financial statements.

If you look at the gross profit for your goods or services that you're doing.
So you take the revenue that you bring in, and you subtract the costs directly related to what you're selling. That's the gross profit. So my friend is a massage therapist, so that would be, like, the sheets and the oils and whatever she needs in order to be able to deliver a message to a client.
If it's a product. It's everything, the materials the raw materials, and what you need to make the product and then send it out. If that number is not high enough number, then you need to take some action right away. Either raise your prices or cut the expenses because so many people will churn and burn,
like, oh, I made a sale. Just because you're making a sale doesn't mean that you're profitable. To really look and see because if you're not making a good enough profit on what you're selling then it's just an exercise to keep you busy. You're never gonna grow and your business is not gonna thrive.