FOUR TACTICS TO TRACKING YOUR PROFIT.

Hey Founders,

Ever find yourself scratching your head at the end of the year, wondering where all your hard-earned profits disappeared to? You're not alone. 11,000+ Founders have come to us with the same story: they're making money on paper, but their bank accounts tell a different tale. Sound familiar? Here's why it's happening:

• No Budget, No Clue: Without a clear and pre-planned money trail showing cash flow in and out, it's easy to lose track of where your money's going.
  

• Lack of Planned Profit: Both gross and net profitability. Securing profit requires planning for it, not leaving it up to chance.
  

• Cash Chaos: You're coming from behind and using this month's cash to pay last month's bills. It's time to get organized and ahead of the game, once and for all.
  

So, how do you take control of your finances and ensure you end up with profit in your pocket? Here are four simple tactics.

GET CLEAR ON YOUR INCOME

Identify your top revenue streams and track them religiously. Knowing where your money's coming from is the first step to financial clarity.

DIAL IN ON DIRECT COSTS

Materials, inputs, and subcontractors—these costs add up fast. So firstly, dial in on the details and double-check the accuracy of your COGS—per Revenue Stream. Secondly, when revenue is received, set aside the projected COGS into a separate holding account, this is not your money to play with. You're holding it in trust to replenish inventory levels or pay subcontractors.

BUDGET FOR ALL INDIRECT COSTS

Don't forget about your operating expenses. Ensure your budget has accounted for everything that month—from advertising to vehicle costs. Track your costs religiously.

PRIORITIZE NET PROFIT

This is where the magic happens. Plan for your net profit first and foremost. Set aside a predetermined amount each month, regardless of any other expenses. Trust me, your bank account and your balance sheet will thank you later.

THE BOTTOM LINE IS THIS...

It's going to take planning, precision and discipline to see a tangible net profit in your bank account at the end of the year. Profitability isn't a luxury—it's a necessity. Net Profit, aka Net Income is your emergency fund, the return on your business investment, and your opportunity to increase your impact in the world. So, plan for it, respect it, and watch your business soar.

ABOUT TAUNYA WOODS RICHARDSON

Taunya is well-known for her straight-shooting, bottom-line-building approach to founder finance. As the Founder of Nail The Numbers, she brings 30+ years of experience in entrepreneurship, finance, and neuroeconomics to our mission of strengthening the minds and bottom lines of Founders across North America.