Here’s a tip for growing a profitable business: run it according to a financial model that works.
That might sound obvious, but many small business owners forge ahead — sometimes for years and years — without a clear, profitable, cash flow positive financial model.
In this video I use as an example a consulting firm based on billable hours but the math logic and Excel structure work whether you’re selling billable hours, large projects, products, or just about anything else.
You’ll learn about the nine parts of a small business financial model plus a few other helpful “how to” tips. A financial model that works is a great reference point for growing your business.
Here are the nine parts of a small business financial model:
- Gross Profit
- Net Income
- Balance Sheet items
- Permanent Cash Flow