Despite what many business owners and entrepreneurs would have you believe, sales are not the be-all, end-all of your business. It’s very on-trend in the current age to brag about running a 7- or 8-figure business – but if you can’t pay yourself from all that money, then what do the big numbers matter?
Now don’t get me wrong – of course you’re going to want to sell more and more of the product or service you’re proud of, but beware: too much emphasis on your top line can have a whole host of unintended consequences for your company.
In particular, selling a product with a low gross margin will ultimately drain your cash and take your focus away from more important metrics and functions that deserve your attention – and when you fail to pay attention to how the rest of your business is running, you could be missing a lot of hidden money that’s right there for the taking. It could be $100k or more!
So, how do you figure out what to measure and where to look to be sure you’re taking advantage of all the cash buried in your business?
Well, it can be incredibly tough to see the forest when you’re standing among the trees. You need an outside perspective with plenty of knowledge to help you build a more complete understanding of your company’s financial position and which operations might need an update.
For starters, look at who you’ve got on your team. Do you have the right expertise on your side? Finding hidden cash requires a sharp eye, a lot of experience and some well-honed powers of analysis. And if you’re looking to a basic bookkeeping service to keep your business on-track financially while you focus on leadership, you’re not going to see the results you need.
This is where a good CFO comes in. Put simply, a CFO dives deep into the financial operations of your company to look at the data, analyze it, and help you make a plan to move confidently forward with more understanding – and with a lot more cash on hand.
Curious to know where an extra $100k might be hiding, and how you can take advantage? Read on.