During this installment of The Confident Advisor Practice from the Horizon Advisor Network, host Pete Bush, Advisor at the Horizon Financial Group, discusses the concept of having five dials for your business. The five dial approach gives business owners five key metrics to ¨fly¨ their business.
Show Notes:
- 1:00---Introduction of the five dials that will help you manage your business
- 3:17---If five dials are working, you can be sure your business is running well.
- 4:27---The five dials are different depending on the plane you are flying
- 5:00--- Discussion about the Five dials:
- 90 Day Accounts Receivable
- Number of engaged opportunities in the pipeline (Keep 20 opportunities)
- Current cash on-hand
- The amount of new recurring revenue added
- Profit and loss statement budget vs actual
- 19:00---The five dials become the language of business
- 20:00---Your overhead should be about 30-40%
- 22:00---Five dials are important metrics to focus on within a business.
3 Key Points:
- Flying a plane can be very complex much like running a business. Though there is a sprawling dashboard to fly a plane, only five dials truly matter. Running a business can be approached the same way.
- Pete Bush shares the five dials (key metrics) he uses to run his business.
- The five dials are 90 day accounts receivable, Number of engaged opportunities in the pipeline, current cash on-hand, amount of recurring revenue, and profit and loss statement.
Tweetable Quotes:
- "The five dials become the language of business." –Pete
- "At the end of the day when you wake up and know these five things, you are going to feel pretty good." –Pete.
- "This is about maintaining proper financial dynamics so you have something on the pulse." –Pete.
Resources Mentioned:
