5 Numbers You Need to Know to Run A Successful Business (#14)

Building It Online Podcast
5 Numbers You Need to Know to Run A Successful Business (#14)
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It’s a lot harder to acquire a customer than it is to keep a customer and if you can keep a customer for 90 days, the likelihood of them staying for 12 months is very high.” — Brice Gump

Business accounting is more than just a simple “money in, money out” equation.

It’s more complex than having a business bank account, a business credit card and making sure you’re saving more than you’re spending.

Mike and Brice explain a few basic technical terms that go a long way in giving you a step up in managing the financial side of running a business.

Check out the show notes below to follow along.

SHOW NOTES

  • Profitability (3:43)
    • the profit you have after factoring in revenue, expenses and liabilities
  • Revenue   (7:03)
    • the projected amount of money made by sales coming into your account
  • Expenses and Liabilities   (9:53)
    • things you are paying every month
  • Cash Flow   (13:08)
    • actual money coming in and out of your account
  • Life Time Value of a Customer   (14:30)
    • one time purchase vs. recurring subscription
  • Knowing how to track these numbers is critical   (16:43)
    • build a spreadsheet, quickbooks, etc.
    • get familiar with how these critical numbers get manipulated

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Episode 14