“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.
- 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
PEOPLE / RESOURCES MENTIONED
- Keith Cunningham – The Ultimate Blueprint For An Insanely Successful Business
- PI Yoga Pants Interview
- Sophia Bera Interview
LET’S CONNECT ONLINE!
- Join The Building It Online Community
- Brice Gump – Major Impact Media, Connect with Brice on Facebook
- Mike Sebastian – Outside ROI, Connect with Mike on Facebook
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