Financial Metrics to Know for Service Based Businesses
Jul 05, 2023Following up on my previous episode about the unique challenges of product-based businesses, today I will be discussing service-based businesses.
There are often many fewer moving parts in service-based businesses, but that does not mean that tracking your finances should be ignored. I often see service-based businesses overspending on labor, advertising, and customer acquisition because they do not have an understanding of what they should be tracking.
I will be discussing the key components to track in your service-based business to make sure that your business is sustainable.
The key takeaways from this episode are:
1. Understand the unique challenges faced by service-based businesses and the importance of tracking finances for sustainability.
2. Learn the top components to track in a service-based business, including labor cost, customer acquisition cost, your time, and churn.
3. Gain valuable insights and practical advice on effectively managing and tracking these key components to optimize the financial health of your service-based business.
What you'll hear in this episode:
[0:50] The unique challenges that come with a service-based business.
[1:30] The #1 thing to track in your service-based business: labor cost.
[4:50] The #2 thing to track in your service-based business: customer acquisition cost.
[9:18] The #3 thing to track in your service-based business: your time.
[11:17] The #4 thing to track in your service-based business: churn.
Related episodes:
Questions to Ask Yourself as a CEO
Why You Want to Build a Sellable Business
Get Back In The Driver’s Seat Of Your Business Finances
Resources:
Sign Up for the Cash Flow Compass Newsletter: https://shorturl.at/hjQUY
Tactical Resources:
5-Day Financial Mindset Refresh: https://www.keepwhatyouearn.com/refresh
Create a Custom Podcast Playlist: https://quiz.tryinteract.com/#/6303d4c525b1e80018d47cfa
Grow Cash Flow for Your Business: https://www.keepwhatyouearn.com/endless-cash
Tax Deduction Guide: https://www.keepwhatyouearn.com/tax-deduction-guide
CFO Power Session: Text POWER to 860-609-6374
See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
Additional Resources & Connect with Shannon:
Find everything you need at https://www.keepwhatyouearn.com
Questions about this episode? Text me! https://my.community.com/shannonweinsteincpa
Hire us: https://www.fitnancialsolutions.com/accounting
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Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
