The Pareto Principle, commonly known as the 80/20 rule, basically implies 80% of results come from 20% of causes. When applied to business, this principle analyzes client and sales data to understand where business owners should invest their time, money, and energy.

In this episode, I delve into the 80/20 rule and how it allows business owners to better define which clients, services, and employees provide the best return on investment.

In this episode, you’ll also hear:

• Identifying high profit customers and services
• Analyzing employee and task productivity
• Knowing where your sales come from

Must-listen moments:

[

For any business to be profitable, services must be priced appropriately. Business owners need to regularly set profit margin goals and adjust pricing accordingly.

In this episode, I break down cost-based and value-based pricing, and tips for competitive prices that keep clients happy and revenue goals on target.

In this episode, you’ll also hear:

• Covering costs and profit margin
• Advantages of value-based pricing
• When to change your pricing strategy

Must-listen moments:

[00:00:38] We think if we do more sales, we'll be profitable. But if you haven't priced your services correctly,

Just like we visit the doctor and dentist for regular check-ups, business owners must routinely review expenses and decide when cuts are necessary. Monitoring the financial health of your business is key to its long-term success.

In this episode, I outline effective ways to decrease expenses, increase efficiency, and preserve customer satisfaction without compromising the value of your goods and services.

In this episode, you’ll also hear:

• Eliminating unnecessary expenses and streamlining productivity
• Suggestions for taking your company lean
• Cutting costs while maintaining quality

Must-listen moments:

The success of any business can be linked directly to organized financial reporting. Knowing exactly what profits are coming in, what expenses are going out, where business is coming from, and how to maximize finances is the best way to keep a business growing and ready for the long haul.

In this episode, I cover the benefits of regularly reviewing these 5 financial reports: accounts receivable, profit and loss by income, profit and loss by your top 10 clients, budget versus actuals, and a comparison balance sheet.

In this episode, you’ll also hear:

• Monitoring and managing cash flow
• Making informed adjustments to your business
• The value of reviewing financials on a regular basis

The only way a business survives is with profitability, and to maintain profitability business owners must routinely examine finances with specific indicators to ensure they are on the path to success.       

In this episode, I review which financial metrics keep businesses on track, how clear key performance indicators support long-term growth, and why it’s crucial for business owners to consistently monitor finances.  

In this episode, you’ll also hear: 

• Fundamental financial metrics  
• Measuring key performance indicators (KPIs)  
• Proactive approach to reviewing financial statements  

Mentioned in this Episode:

Understanding the financial health of your business is vital to its long-term success and sustainability.   

In this episode, I define what financial literacy is, different ways to invest in your financial literacy, and why financial literacy is a superpower for you and your team. 

In this episode, you’ll also hear: 

• Benefits of financial literacy  
• Resources to increase financial literacy  
• Financial reporting and training for employees  

Must-listen moments:  

[00:00:50] Financial literacy is a superpower. It can empower you to make informed decisions, navigate challenges, and drive success in your business. 

Some believe you must spend money to make money, but that doesn’t give business owners free reign to rack up debt for business expenses and still expect to turn a profit.  

In this episode, I explore the pros and cons of incurring debt and why a strategic approach to debt management aligned with your business goals is key to sustainability.  

In this episode, you’ll also hear: 

• Identifying good debt vs. bad debt  
• Managing debt with intention  
• Creating a realistic repayment plan 

Must-listen moments:  

[00:01:18] But the difference between a good debt and a bad debt is that a good debt is incurred for strategic investments. That means that you are looking to get debt that is going to make you money, not debt to pay down expenses. 

Just as forecasts for daily weather help us prepare for ever-changing temperatures, financial forecasts allow small business owners to make informed decisions in an ever-changing market.  

In this episode, I emphasize how financial forecasting helps predict where your money is going while keeping your company moving in the right direction.  

In this episode, you’ll also hear: 

• Anticipating income and expenses  
• Determining resource allocation and ROI  
• Tools for forecasting and reviewing financials  

Must-listen moments:  

[00:02:32] There might be something more that you need to have, and this way you can strategically allocate these resources, money, people, so that you will be able to take advantage of these situations when they arise.