Donna Bordeaux (Donna Genie) explains why running a business by checking only the bank balance is inadequate. She emphasizes maintaining complete bookkeeping (knowing who owes you and when), managing cash flow and profitability (revenue vs costs/pricing), and having a 12-month growth-oriented revenue plan rather than just firefighting day-to-day.
Are you looking at your bank account balance each day, each month and hoping there's enough there to manage your finances? What if I told you there was a smarter way to take control of your money and reach your financial goals? I'm Donna Bordeaux, and in today's video, I'm going to show you the smartest way to manage your finances and what that looks like. So first, managing your bookkeeping is a big issue. Managing your business by looking at your bank account is like driving down the road, only staring at your speedometer in your car. You need to know the full vision of the path in front of you to be able to manage your business effectively. You need to know who owes you and when you expect that money to arrive so that you can manage your cash flow picture. That's not the end of it. You need to be profitable. You need to be managing your profit as well. And that involves looking at the revenue versus the cost or your pricing strategies. You'll need to have a plan for growth, not just maintenance. You want to be looking to grow, not just fighting fires every day. You need to have a structure lined up to know how much you expect your revenue to be 12 months from now.
