Today in Coaching Conversations, Nick Psaila and Chris Herbert discuss the importance of financial KPIs.
If you’re serious about growing your business you must have clear financial targets. Loose or vague numbers won’t get you where you need to be.
Weekly or monthly, are you striving towards a financial goal? If not, why not?
As a base question, how did you go this week? How much money did you make? Nick and Chris dive into how businesses must be accountable for improving profitability with thoughtful, fearless goal setting.
So, let’s go! Targets – why you must set them and what happens if you don’t – in the latest episode of Coaching Conversations!
Time Code/Show Notes
0.22 Welcome to the show and intro.
1.55 Are you one of the many Aussie businesses that don’t have concrete financial targets? Do you leave it to your accountant? Do you feel secure about what’s in your account – or do you avoid looking at your figures as much as possible?
2.56 Nick begins with the number one reason to have sure financial targets. Accountability. Do you know what you’re quoting? Do you ignore financial data? How do you keep on track to set your financial goals without basic data assessment?
5.08 Nick has great markers on how to become accountable. No more head in the sand! Understanding and overcoming the fear of the unknown plus repetition is the key. You will become better at numbers!
7.20 “The numbers will become a picture”. As you improve, ask for help, talk with your bookkeeper/accountant, the numbers will no longer hold you hostage. Don’t fear it – and keep doing it – that’s when it will fall into place.
8.50 A lot of clients say “we didn’t make a lot of money last month so we’ll work harder” or “my net profit figure doesn’t match what I have in my account!” Nick talks through the immediate changes you can make for real difference.
10.15 Target to assess? Covid hammered almost every industry and more than ever – initiating accountability gives you a target to assess. On a short-term basis, Nick says this is key to avoiding the fallout of plummeting profitability.
13.00 We feel a sense of accomplishment when we value money. Dialing into the money and the numbers help with a feeling of “reward”. Money is not everything, but it’s Business 101 and it gives you options ie money to finance the equipment.
16.10 Having targets give you choice. From hiring and expansion to cash flow to marketing… without a profit account, you don’t have choices to keep the business growing. It can be selfish – but also selfless in that you have choices to give back to the community(personal) or help a team member (business)
19.30 Increasing your asset worth is a supplementary reason to shoot for – and constantly assess – financial targets.
22.25 Like to learn more about financial target setting? Reach out to Nick and Chris at …. ask@upcoach.com.au
EPISODE SUMMARY
The message is crystal – there’s no point working harder and not smarter if you don’t have clear financial targets and strategies in place.
The big take-away here revolves around accountability. Without accountability, you will forego assessable targets.
Additionally, feeling a sense of accomplishment is important as you are rewarded for hard work. Success, at the gut level, is why most people are in business themselves. Don’t forget that having that healthy profit account gives you choices.
And finally, the knock-on effects of setting goals can increase your asset worth. Understanding how much money you’re making – and where it goes – plus knowing that steady growth month on, month off is vital to selling your business!
Hitting objectives is always impressive. So, get better at the numbers and eventually the numbers become a “picture”. It’s this picture of profitability that makes running your own business all the more rewarding!