Description

This episode dives into the importance of understanding your profit and loss (P&L) statement for making money in your business. Lucy Starbuck, a chartered accountant focused on empowering female business owners, argues that the P&L is the key financial report for business owners to understand.

Here are the key takeaways:

• Review your P&L monthly: Don't be afraid of the numbers! Regularly reviewing your P&L helps you understand your income, expenses, and profit. This awareness is crucial for making informed business decisions.
• Profit Margin Matters: The P&L reveals your profit margin, a key metric for business efficiency. The goal is to continuously increase your profit margin by strategically controlling expenses and potentially increasing revenue.
• Look Back to Move Forward: Analyzing your past month's P&L (e.g., July) is essential for informed decision-making in the coming months (e.g., August). Spending 30 minutes a month on this review can significantly improve your future performance.

MAGIC BY NUMBERS KICKS OFF ON 30TH JULY. Click here: https://www.lucystarbuck.co/magicbynumbers

To purchase The Finance Fix (your business finance starter kit, including bonus bookkeeping & P&L template), click here: https://www.lucystarbuck.co/offers/TZQzho26

Book a 15 min discovery call with Lucy at https://calendly.com/lucystarbuck_co/discovery15