In this second episode, Teeco Steve dives deep into the financial side of building a better business. He introduces the concept of a Financial Dashboard for small businesses, focusing on Key Performance Indicators (KPIs) that help owners monitor and improve their business health. Steve emphasizes starting with one crucial metric: the Labor Efficiency Ratio, explaining how to calculate and use this number to drive operational improvements. The episode also explores the personal finance side, sharing Steve's own story of how lifestyle inflation nearly derailed his work-life balance goals, and the "inner work" required to align personal spending with life priorities.

Key Topics Covered

The Financial Dashboard Concept 

• How financial dashboards help business owners make informed decisions 
• The importance of monitoring key numbers daily, weekly, or monthly
• Working with accountants and bookkeepers to rearrange existing tax data

Labor Efficiency Ratio  Your First KPI

• Definition: What percentage of gross profit is labor
• Understanding Sales, Cost of Goods Sold, and Gross Profit 
• Why labor is typically the biggest cost in most businesses
• How to use this ratio to identify efficiency opportunities

Implementing Efficiency Improvements

• Walking your business with "efficiency glasses" 
• Practical examples from tent rental business: truck loading, routing, setup methods
• Application to other business types: manufacturing, distribution, service
• How improvements create a game-like approach to business optimization

Personal Finance and Life Alignment 

Steve's story of lifestyle inflation after business success

The disconnect between stated goals (family time) and actual behavior (working more)

How personal spending directly impacts business profit requirements

The Inner Work Challenge 

• Defining what you truly want from life
• Aligning spending with actual values vs. perceived status needs
• Facing fears and being honest about motivations
• The ongoing nature of this work as life circumstances change

Vulnerability and Self-Awareness 

• Understanding the difference between wanting praise vs. genuine relationships 
• Making difficult choices to realign lifestyle with values
• Reducing business profit requirements through conscious spending

RESOURCES MENTIONED IN THIS EPISODE:

Forcey Software: Recommended for tent rental businesses, provides real-time labor efficiency tracking. https://www.forcey.com/

Book Recommendation: "Simple Numbers, Straight Talk, Big Profits" by Greg Crabtree, author and entrepreneurial finance expert. A simple read that will change how you view finances and business operations. Order here: https://a.co/d/5iwG0lI

Key Takeaways

1. Start with one KPI: Labor Efficiency Ratio

2. Use existing bookkeeping data to create your dashboard

3. Walk your business looking for efficiency improvements

4. Personal spending habits directly impact business profit needs

5. Inner work and honest self-reflection are essential for alignment

6. Better business and better life require constant adjustment and honesty

SUBSCRIBE & REVIEW

If you loved this episode, please take a moment to subscribe and leave a review on Apple Podcasts. Your support helps us reach more entrepreneurs who need these insights. Thanks for tuning in to the Teeco Steve Podcast! See you next week!