Do you want to learn more about the numbers in your practice? How can you develop your money mindset? Can you measure your numbers to track growth in your practice?
In this podcast episode, Joe Sanok speaks with Danielle Hayden about how to become financially literate.
In This Podcast
- Important numbers to know in the startup phase
- Do what is good for you and your business
- Important numbers to know when growing your practice
- Danielle’s advice to private practitioners
Important numbers to know in the startup phase
Whatever your startup funds are to get your practice going, cash is king. Monitor your cash flow every week.
Use a weekly dashboard, which tracks your:
- Credit cards
- What is owed and to who in the next 30 days
- Income that will come through in the next 30 days
- Available money to use
People call it investing … in their business, however, [they’re] not investing smartly, so looking at this weekly dashboard can help you to make the best business decisions. (Danielle Hayden)
Do what is good for you and your business
Spend time doing some self-reflection on what is going to be the best risk profile for you and your business.
For startups, having access to cash is good, but only if you are not going to blow through it. If you are at risk of unnecessary spending, then place it somewhere safe, and give yourself an allowance.
Be mindful of “shiny object syndrome”. Do not give in to purchasing and doing everything that everyone else is doing around you if it is not going to support your goals.
I want you to reflect on [whether] this is the right professional development for [you]. Is this what [you] need, today? There comes a point where we need to stop learning and start doing. (Danielle Hayden)
Important numbers to know in growing your practice
Every month, look at:
- Profit and loss statement: look at gross margin, which is sales minus labor costs. Aim for a minimum of 30% profit.
- Balance sheet: a review of your assets, cash, liabilities, and owner withdrawals.
- Cash flow statement
You need to know where you see your business going before you can plan your expenses, because you have to have those measurables, but you need to have the intention before [working with] the measurables. (Danielle Hayden)
Have a high plan and a low plan:
- High plan: for when you have extra budget and how you can use it properly
- Low plan: for when you have less money than you expected and what you can do
You have a responsibility as a business owner to look at your numbers regularly so that you are sure you have enough cash to keep serving your clients, to provide for your contractors, employees, vendors. (Danielle Hayden)
Danielle’s advice to private practitioners
Start today. Wherever you are in your journey, take one small step.
Books mentioned in this episode:
Useful Links mentioned in this episode:
- Get your first 3 months of website service completely FREE. Head to brightervision.com/joe.
- Visit Kickstart Accounting, Inc. and connect with them on Facebook, Instagram, Twitter, and LinkedIn.
- Schedule a call with Danielle!
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Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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