Lessons
Course Introduction
01:40 2The Two Magic Numbers
03:17 3Tie The Magic Numbers To Your Product Or Service
01:47 4Restaurant and Product Examples
02:31 5Tools to Help Calculate Cash Flow
03:16 6Should I Get a Bookkeeper?
03:15 7Personal Vs. Business Finances
02:52 8Key Takeaways
02:29Lesson Info
Restaurant and Product Examples
So, for example, if you own a restaurant, right, and you're taking some time to review your cash flow, you may determine that you might be offering too many menu items on your menu, right? I have been to restaurants and there's literally 100 different menu items. I'm like, I know there is no way that people are buying all of these menu items. So what does that mean? The product that you're buying or the recipes of the ingredients that you're buying are probably going bad, which probably means it's costing you money to have this item on the menu and no one is buying it. So that is one great example of taking some time. And, you know, I I laugh sometimes about some of these restaurant takeover shows and they'll come in and see a restaurant and the restaurant offering, you know, 50 menu items. And they cut that down to 10. And they're, you know, they do, some researchers say, hey, what are your top 10 highest selling products? And it's literally, you know, just 10 simple products that cos...
t them, you know, at least amount of money or maybe the ingredient prices are lower. And they're immediately able to see a positive increase in their cash flow because they cut out these products that were literally costing the money to have on the menu. So that's another reason why even for a restaurant tour, um, to make sure that you're constantly monitoring your menu, constantly, making sure that the products that you are making available to your, to your audience aren't just going to waste and aren't just costing you a lot of money. I was talking to a friend recently who owns a, like a protein bar company and she realized that the bars that she was selling that had lower protein weren't selling, they just weren't selling at all. And those were the first two flavors that they had made. So they were, you know, kind of emotionally attached those flavors like these the first flavors that we made. But when we looked at their, when they looked at their numbers, they realized that they were continuously making this flavor. But no one was buying them because they had lower protein, right? So she had to remove the emotional ties and cut those bars because those bars were costing her money just to make. But it was cutting into their cash flow. So those are just a couple of different examples of looking at your numbers, looking at your books and determining if what you're already doing is negatively or positively affecting your cash flow.
Ratings and Reviews
a Creativelive Student
I wasn’t looking for a financial class today and accidentally clicked the link during a broadcast. I decided to watch it, since it’s less than 30 minutes. It’s one of the most useful classes I’ve seen versus the low-time investment. This course is jam-packed with practical information but delivered with sensible pacing and no fluff. Ms. Broadway presents each point with infectious enthusiasm and clarity. It’s straight to the point, and easy for anyone to apply to a business of any kind. While I was already using some of the points she makes, I feel that this course can be helpful to anyone who’s not keeping solid records of business income and loss, or trying to pinpoint what products and services are consistently costing you more money than they earn. She’s talking about questions that every business owner should be asking themselves every month. Whether it’s because of challenges in the wake of the pandemic or because you never really had a genuine grasp of managing the financial aspects of your business in way that allows growth, it’s likely not too late for you to start fresh and find ways to maximize your income and/or get a helping hand via software or a bookkeeping service.
Dex Cagan
A nice high-level overview of cash flow that's approachable and easy to understand, delivered with great energy.
Lily Gautro
Student Work
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