You may have seen my post last month about our Broken Back-End Business Model.
For months I’ve been working on this issue in our business: we’re bringing in great revenue, but we’re just not as profitable as I want us to be. (Because the cost to implement at the level we’re playing quickly eats up our revenue.)
This is the central challenge facing each entrepreneur: how to maximize your assets, and minimize your expenses.
In January, I experienced a break-through moment in this process — and I want to share it with you.
I was at the Traffic & Conversion Summit in San Francisco (Ryan Deiss’ event, which was amazing). We’d sponsored a booth there. It was the last morning, 8:30am. This man, dressed all in white, walked up to me and started making funny jokes about our hippie brand. We got to talking, and it turns out he’s a business consultant to enterprise-level companies (we’re talking $90 million revenue), and really knows his sh*t.
So I said “listen, Garrett – I’ve got this problem. I’d love to hear your thoughts on it.”
I told him about our biz model & how we were perpetually stuck in survival mode, instead of scalable income mode.
He immediately said “what is your cash reporting like?”
We already had a lot of great systems in place – P&Ls, weekly & monthly reviews w/our finance team, quarterly meetings w/our accountant, Cash Planning doc for forecasting, the works.
But he pointed out to me, when he saw our Cash Planning doc, that we weren’t forecasting our numbers accurately in time, and we weren’t forecasting every expense associated with each income event.
*What does that mean in plain English?*
If your financial forecast is the crystal ball of your business, I was working with some muddy glass.
I can’t emphasize the importance of this learning enough! For months Alexis had been telling me, “we need to fix the back-end of our business model.” (Over and over, she was telling me this.) But when I went through this exercise with Garrett, I actually SAW it for the first time.
I SAW where we weren’t profitable, and why, and what we had to do to change it.
After going through this process with me in our business, Garrett decided to offer his system (which he’s used with executives of large corporations since 1995) in a way that is accessible to smaller entrepreneurs (like us, and like you).
He’s going to get on the phone with Alexis and me this Tuesday to answer ALL of your questions about what this is, how it works, and how this knowledge can do for you what it did for me – show you exactly where you’re losing profits in your business, and how to fix it.
Register now to be with us this Tuesday & hear all the details:
If you’re reading this after the call and you want to contact Garrett, go to www.cognizion.com.
Share your thoughts below – have you had the same issues? Where are you stuck? What insights do you have?