On the last podcast episode, Terrell Turner and guest host Chris Word talked through four importance metrics that every business owner needs to be keeping an eye on. On this episode of the podcast, they break it down to actionable and practical steps. It’s one thing to know your numbers but what actions can you take throughout the month or week to ensure you’re hitting them? 

It’s important as a business owner to be proactive – yes things get busy and we get caught up in the day to day of running the business, but an owner it’s important to take a step back and think strategically about whether your actions on a day to day basis are helping drive your business forward. 

On this episode Terrell walk through the example of a landscaping company to help provide context to the numbers. Enjoy the episode! 

Regardless of where you are in your career, or business – it’s important to have metrics that you’re watching and keeping an eye on. On this episode of the podcast, Terrell and guest host Chris Word, breakdown the importance of keeping an eye on the metrics below:   

1-      Revenue per Month but more importantly your revenue per headcount – how much revenue are you bringing in per employee? Are you growing your team faster than you’re growing your revenue?

2-      Average Revenue per sale – How much do you make per business activity as an average – this allows you to determine how many heads, customers you need to see on a daily basis to hit your target. 

3-      Gross Margin – is your price high enough to cover the cost of making your product? i.e. you sell shoes – your shoe costs $60 to make and you sell it for $100 – your gross margin = $40.

4-      SG&A as a % of your Revenue – SG&A essentially is your selling, general and administrative expenses – these are expenses not related to your business that you still have to pay for like your rent, utilities, salary – these are costs you need to keep the business running. It is important to keep an eye on these to make sure they don’t spiral out of control. 

Calling all Booty short and Crop Top lovers! Forever 21 just announced they will be filing for Chapter 11 Bankruptcy (not closing it's doors, just taking sometime to get the company reorganized). Amidst this restructuring, the owners of Forever 21 are considering closing multiple stores which means a really good deal for the loyal customers! From a business stand point, Forever 21 shows us the importance of :

1. Evolving to meet your customers where they are - (understand where and how your demographic accesses your products and services to make sure it's available on that platform - in store, social media etc.

2. Creating brand diversity - make sure you think through the impacts of a "low cost, high volume strategy". If you focus on high volume, low cost you tend to get grouped in with the other brands (Walmart, Ross, TJMaxx) and no longer stand out as a unique offering.

3. Minimizing and properly manage your overhead and inventory cost -  making sure you are managing your cash well and not overloaded with your buildings and inventory. 

Enjoy the episode!

#businesstalklibrary #forever21 

If you listen to any business news, it’s difficult to go through the segment without hearing the words “top line” or “bottom line”. Top Line is essentially your revenue or what the money you make from selling your products or services and is normally the first thing you see at the top of your income statement. Your “bottom line” is defined is as your net income or the money that is left after all your expenses are paid. Both factors are important to run a successful business but often times, competing priorities when companies want to increase revenue without considering the potential costs that may come along with it. On this episode, Terrell and Lola discuss Revenue and Profit and the importance of both in ensuring that you are running a successful, growing and profitable business that is sustainable. 

How do you know if you are winning if you aren't keeping score?

This is one section of a multi episode series that is all about helping you understand how you can track the right things in your business so you know how to stay on track.This first part of the deep dive discusses the importance of metrics when it comes to gauging how your business is performing.

Thanks Chris Word II for being the guest host in the show. "Business Talk Library"


Enjoy and keep it simple.

In this week's round up we talk about some of the top news stories in business and how they may impact your business.
- FedEx tells Amazon "the love is lost and we should go our separate ways."
- #AI is frustrating customers which means big opportunities for small businesses
- Facebook is making updates to its advertising policy
- John Lee Dumas gave us awesome #firenation wisdom
- Jen Glantz has an awesome business idea that can teach us all something.

Enjoy the weekly round up #businesstalklibrary

If you want to win in business and/or your career you have to do a good job at keeping score. Just like any sport or game your score tells you a whole lot about your performance and gives you a reality check on your chances at winning. If you are going to effectively navigate the steps ahead for your business or your career you must learn how to understand the accounting and financial impact of your operations. In this short episode, I interview a gentleman who is a business owner, entreprenuer, professional and great leader in business, to get his perspective on keeping score. Chris Word II

Enjoy the show.

#business #scorecard #entreprenuer #leadership

Episode 15 features a passionate business woman that started a business based on a unique experience that she and her husband had while on a trip to Guatemala, Central America.  After coming back home to Cincinnati, Ohio; Shanice Martin and her husband Leonard Martin started Sodzo Therapeutics which has been a great resource to help others realize significant improvements in their own lives.

We are very excited to have her on the show to tell us how she and her husband took and idea from Central America and built a successful business in a small town just outside of Cincinnati. The tips she shares about how to create an environment for award winning customer services are priceless and a must hear for anyone thinking of starting a business.

Enjoy the show

Sodzo Therapeutics:
 5161 Pleasant Ave C, Fairfield, OH 45014
https://www.facebook.com/sodzotherapeutics/

"Accounting is the language of Business" - Warren Buffett.
On today's episode, Terrell explains the basics of the financial statement in less than 5 Minutes. 

What are stocks and how do people make money from them? We keep it simple here on the Business Talk Library