Ask-A-Boss #016 Finance: Funding, Preparing your books, and Understanding your numbers
Hello, Sister Bosses!
Today, we're going to talk about something that can be a little daunting for some of us – finance. But don't worry, we'll break it down into manageable chunks so that you can take control of your business's finances with confidence. We'll cover everything from funding to preparing your books and understanding your numbers. So, let's get started!
Funding:
When it comes to funding your business, there are a few options available to you. You can apply for a loan from a bank or credit union, seek out investors, or apply for a grant. Whichever route you choose, it's essential to have a solid business plan in place that outlines your goals and projections. This will help potential investors or lenders understand what you're looking to achieve and how you plan to get there.
Preparing Your Books:
Keeping accurate financial records is critical to the success of your business. It's essential to have a system in place to track income and expenses, such as a bookkeeping software or hiring a bookkeeper. Your books will help you understand the health of your business and make informed decisions.
Understanding Your Numbers:
Now, let's dive into the nitty-gritty of understanding your numbers. Here are some key terms and metrics to keep in mind:
Revenue: This is the total amount of money your business brings in before any expenses are deducted.
Expenses: These are the costs associated with running your business, such as rent, utilities, salaries, and supplies.
Gross Profit: This is the difference between your revenue and the cost of goods sold (COGS). COGS are the direct costs associated with producing and selling your products or services.
Net Profit: This is your business's bottom line – the amount of money you have left after all expenses, including taxes, have been deducted.
Break-Even Point: This is the point at which your business's revenue equals its expenses, and you're not making a profit or a loss.
Knowing these terms and metrics will help you assess your business's financial health and make informed decisions about where to allocate resources.
In conclusion, finance can be overwhelming, but by taking small steps and focusing on the essentials, you can confidently manage your business's finances. Remember to have a solid business plan in place, keep accurate financial records, and understand your numbers. And if you need additional support or guidance, Her Corner is here to help. We offer resources, coaching, and a community of women entrepreneurs who are all on the same journey. Let's make 2023 the year we take control of our finances and grow our businesses!
P.S. If you're a woman entrepreneur looking to take your business to the next level and gain more in-depth knowledge about financial growth, join Her Corner today. Our community of like-minded women and experienced coaches can provide you with the support, resources, and guidance you need to succeed. From group coaching sessions to one-on-one consultations and accelerators, we have a variety of programs tailored to meet your unique needs. Don't let financial challenges hold you back from achieving your business goals. Join Her Corner now and start your journey towards success!