Episode 337: Numbers You Need To Know In Your Business

Hey, Jumpers! Today's topic is all about numbers and their importance in your business. It may not be the most exciting subject, but hear me out, because it is definitely one of the most critical aspects of running a successful business. Many business owners tend to overlook the significance of numbers in their operations, leading to financial mismanagement and potential losses. In this podcast episode, we'll dive into the numbers you need to know in your business and ensure you're getting them right. Whether you're a small business owner or a CEO of a large corporation, understanding and utilizing the right numbers can help you make better decisions, identify growth opportunities, and increase your bottom line. Topics Discussed and Key Points: Why tracking numbers is important Numbers make us better leaders when making decisions Mastermind Six numbers to track for your business Chinese wall The importance of tracking website analytics Knowing the profit margin for all services, charging by time, and using numbers to make decisions. Timestamps: [00:32] Introducing today’s show [01:51] Why we need to know numbers [03:44] Tracking revenue [03:58] Tracking expenses [05:17] Tracking net income or loss [06:24] Tracking  gross margin [06:35] Tracking  cash flow [06:43] A break-even point [08:27] The importance of Google Analytics [08:51] Why do you track your user number [09:24] Sessions [09:41] Bounce rate [10:18] Average session duration [10:53] The conversion  rate [11:17] Employee retention rate, churn rate, and client retention rate [12:36] Check out the Mastermind Notable Quotes: [00:01:06] ‘If you want to grow your business, you need to know your numbers. You need to know them at a minimum every quarter. I encourage you every month.” [00:01:17] [00:02:11] “Our team needs numbers to hit or to strive for, to know. All right. This is the litmus test. We're doing good or we're not doing good.” [00:02:19] [00:03:14] “Numbers matter. Your business numbers matter. The revenue numbers matter. Your client total. All of that matters. But it can be a real pain to try to figure out which ones you should be tracking.” [00:03:25] [00:03:58] “If you guys are using a debit card right now to pay for anything in your business, you're not leveraging what you could be. I highly recommend applying for a credit card, a business credit card, and get your business credit going and you can earn points that way.” [00:04:16] [00:07:11] “By tracking those numbers and analyzing them regularly, you can gain valuable insights into your performance and then be able to make informed decisions on what you should do.” [00:07:21] [00:08:02] “While you might not love numbers as a business owner, as a responsible business owner, you need to know some of these business numbers.” [00:08:11] [00:08:33] “Your Google Analytics is the epitome of if you had a storefront, you want to know how many people come in your door a day, right? You want to know what the average sale is every day. You want to know how many people walk in and walk out without buying anything.” [00:08:50] [00:09:28] “By tracking the number of sessions, a business can see how often users are visiting the website and identify opportunities to engage in or train them.” [00:09:36] [00:09:53] “A high bounce rate isn't necessarily a bad indication. Why? Because most of you guys have an online scheduling system that is hosted on a third-party website.” [00:10:04] [00:10:30] “There are so many statistics that the more people read on your website and watch, the more likely they are to buy your product or service because they are invested.” [00:10:41] [00:13:03] “Failure is the greatest lesson we can have. And so you want to fail forward. You want to fail fast. You want to learn everything from that failure so that you can tweak and adjust. It's testing, you can tweak and adjust and keep going.” [00:13:16] [00:14:51] “If your 20 minutes is $20, then your 30 minutes should be $30. But most of the time your 20 minutes is $20 and your 30 minutes is like $24. That doesn't make sense. It doesn't make sense, nor does it make sense that a lot of people who charge by time don't charge by time.” [00:15:10] Links: Resources Podcast: Bella in Your Business: Pet Industry Business Podcast Join Mastermind Email Bella: [email protected] Connect with Bella Website Facebook Instagram YouTube Did you love this episode? If you liked this episode, please head on over to iTunes and leave a five-star rating and review. Every single review helps get this community bigger, stronger, and better. It gets other jumpers just like you into the community. Always remember when life gets down, always keep jumping Transcript: Welcome everybody to another episode of Bella in your business. My name is Bella Vasta. And today we're going to talk about something that a lot of you do not like talking about. It is the number one topic that hinders a lot of your decisions. It's the number one thing that if you paid more attention to it and used it to make more decisions, you would make better decisions. Do you know what it is? It's numbers. Yep, the numbers in your company. Today, we're gonna talk all about the numbers that you need to know in your business, I'm gonna give you a good overview of it so that you can kind of just start thinking about it. And tracking it tracking is key. If you are if you want to grow your business, you need to know your numbers, you need to know them. At the minimum every quarter, I encourage you on a monthly basis, you need to have these things called key performance indicators, KPIs so that you can kind of set up a spreadsheet and whatever, whatever is the indication of good performance, those are the numbers you should be tracking. And it might be different for everyone, depending on your goals. But we're gonna talk all about this today, we're gonna get down and dirty. I'm gonna give you a good overview, some good food for thought if you will. But first, if you love this podcast, please feel free to share it with your friends and tag us. And also don't forget to subscribe, and I would love it if you would leave a review. Alright, so getting into it. Why do we need to know numbers, it takes the feeling out of it. And it helps us be better leaders. So we can make decisions based on numbers and not our feelings. As we delegate and we need to bring people on our team, we need to define their success not based on our gut, but based on the numbers. Our team needs numbers to hit to strive to know, alright, this is the litmus test, we're doing good or we're not doing good. And it's just in time for taxes. Taxes were due this week, and personal taxes, and corporate taxes were due last month. But you know, it's just everything's numbers. It's even-numbered in the mastermind this month. We're talking deeply about it. We're giving out all kinds of freebies it's a champ churn rate freebie for regular dog-walking clients. And we're going deep on it. We're not going to go too deep today, because this is just like me too many. And it's kind of hard to have that intimate conversation. But if you're looking to have that intimate conversation, the mastermind is someplace you might want to check out. That's jumpconsulting.net/mastermind. Or if you're still unsure, shoot me an email [email protected]. And we can get together and have a chat on the phone. All right, so pardon me. So what I wish someone had told me a long, long time ago, numbers matter. Your Business numbers matter, the revenue numbers matter your client total, all of that matters. But it can be a real pain to try to figure out which ones you should be tracking. Because frankly, not all of us went to business school. Here are some quick tips for everyone who is learning as they're going to make mistake steaks and pick us up, pick ourselves back up again, as the owner of a dog walker in your pet sitting business, you need to track these six numbers. So the first one is revenue. So that's how much money the business earns, from your services, and expenses. That's the total money amount of money that goes out. And I would, really, really encourage you if you guys are using a debit card right now, to pay for anything in your business. You're not leveraging what you could be, I highly recommend applying for a credit card, a business credit card, to get your business credit going. And you can earn points that way and those points you can turn in to get an airline ticket or Disney tickets for the family or whatever it might be. But I want to encourage you to be strategic about it. I have got one of the best business cards ever. I make double at least double back on all of the annual fees. It's it's amazing. It's my favorite card ever. If you want to know about that, let me know. And I will I'll send you a link it's [email protected] Just email me but I'm definitely all of your expenses should be that way and then you also need what they call a Chinese wall like it means that nothing is intertwined. You charge everything on this one card ARD and you pay everything from the business bank account, it actually will make things a heck of a lot easier when you're trying to reconcile your expenses or your bookkeeper is because it just makes it streamline and flow. I know most of you guys know this, but I know a lot of you aren't doing it. So I want to encourage you. The third, third thing is net income or loss. So this is the difference between the business's revenue and expenses. And if the business earns more than it spends, it's a net income, if they spend more than they have, it's a loss. Now I know some of you guys try to write off everything and the kitchen sink. And that is a strategy. It's personally not a strategy I feel comfortable with. And the reason is, because one day,