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Maximizing Profitability: The Importance of Knowing your Numbers with Liz Helton
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On this episode of Roots Of Success, we dive into the importance of financial statements for landscape businesses. From an overview of your Profit and Loss statement (P&L) to understanding expenses, pricing, and profitability, McFarlin Stanford’s head of finance, Liz Helton provides a wealth of information for entrepreneurs and landscape business owners. We touch on everything from managing labor costs, marking up materials, and understanding direct and indirect expenses. We also talk about the unique 50-40-10 rule you can use to help maximize your profitability and grow your landscape business. Tune in to learn more about financial management and how it can pave the way for business success
KEY MOMENTS:
[04:31] The important numbers between revenue and net profit on your P&L statement. [05:42] The 50-40-10 Rule you can use to maximize profitability. [08:52] Increase prices or increase efficiency (cut costs)? [12:32] Focus on big line items and provide incentives to save big money. [14:37] Simplify expense categories to avoid analysis paralysis. [17:45] Why personal finance is a good comparison for running a business.
FREE DOWNLOAD:
Get Your FREE Profitability Scorecard to understand the financial health of your business today!
Go to: McfarlinStanford.com/scorecard
FOR SHOW TRANSCRIPTS & MORE, GO TO:
https://mcfarlinstanford.com/podcast/ep-1-liz-helton-maximizing-profitability
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