#111: Income Statement Explained and How to Use it to Grow
Podcast:Next Level Pros Published On: Fri Jun 21 2024 Description: Welcome to a new episode of The Founder Podcast! In this episode, we dive deep into understanding the financials of your business, focusing on building an income statement and conducting a break even analysis. Learn how to effectively assess your sales, costs, and margins to ensure your business is scalable and profitable. https://nextlevelhomepros.com/june25thworkshop Highlights: "Not understanding the financials of your business could be costing you millions." "There’s the traditional way to look at it with GAAP accounting principles, and then there’s the business owner way." "Every dollar collected would mean 45 cents to the bottom line once you're breaking even." "For every dollar I spend on marketing, it's going to equal $40 in revenue." Timestamps: 00:00 - Introduction 01:30 - Importance of Understanding Financials 03:45 - Basics of an Income Statement 05:20 - Understanding Sales and Cost of Goods Sold 08:00 - Gross Profit and Gross Margin Explained 10:00 - Calculating Cost of Acquisition (CAC) 13:30 - Breakeven Analysis Breakdown 17:50 - Scaling Your Business Effectively 20:30 - Impact of Fixed Costs on Breakeven 24:00 - Workshop Announcement and Closing Remarks Looking to scale your business? Want to learn directly from the same team that helped me sell my last business for 9 figures? Click this link below to check out how you can work with us. https://nextlevelhomepros.com/grow-home-service-vsl Join my community - Founder Acceleration https://www.founderacceleration.com Apply for our next Mastermind: https://www.thefoundermastermind.com Golf with Chris: https://www.golfwithchris.com Watch my latest Podcast Apple- https://podcasts.apple.com/us/podcast/the-founder-podcast/id1687030281S Spotify- https://open.spotify.com/show/1e0cL2vI1JAtQrojSOA7D2 YouTube - @thefounderspodcast