NFL, Yahoo, CPA discussed on The Art of Online Business


So as entrepreneurs were like where the heck do we even start with. This thing incessant art will what are the real important numbers that is a business. Owner is a decision maker. What are the ones i have to understand wanting to pl it turns out. There's only three out of all those. There's really only three revenue. Gross profit in net profit. Okay and there's an. There's a fourth one. I call the critical or financial metrics. There's a fourth one cash. It doesn't live on the nfl. But unlike if i can just understand how every decision in my business impacts revenue how it impacts bros profit in how it impacts net profit in also cash. That's like ninety five percent of the hard work. Right at yahoo stan. How decisions impact. Those four numbers you can make better decisions and says not a metaphor necessarily but it's like in the simplest form that's really all in a balance sheet are right now. There's more to it that there's important things beyond that but those are important for your accountant. Cpa and tax prepared. Worry about not for you. You know this is you know that simplification process so you bring up these four numbers and i wrote down. I took a note there. Difference between gross profit margin net profit margins. So i wanna get to that if someone is. They're they're making money in their business and there. Maybe they have a bookkeeper but or bookkeeping company. I see this a lot where the bookkeeping companies keeping track of numbers categorizing stuff and then sort of like handing it over to the entrepreneur. Doesn't really know like to your point. Michael like they don't really know what to do with. So how does one get started with gathering these numbers number one and then let's dive into these four four metrics if you will for numbers that people like most people really aren't looking at or they don't understand what they are and actually had to take action from them. Yeah let let me start by saying this. I love bookkeepers..

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