Christian, Husband, Father, Golfer || Fractional CFO to SMBs || I write about SMB finances to 40k business owners & leaders weekly: https://t.co/OxWSQCNxfS
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Feb 28 • 13 tweets • 3 min read
Each of the 3 financial statements answer a different question:
1. Income Statement: Are you profitable? 2. Balance Sheet: Are you healthy? 3. Statement of Cash Flows: Where is cash going?
Let’s break them down one-by-one:
Income Statement
Revenue - Expenses = Profit
Accrual financials align revenue and expenses, which highlights dollars made on each dollar of revenue (called profit).
Expenses are broken based on the type of expense they are:
• Cost of Goods Sold
• Operating
• Non-Operating
Sep 23, 2023 • 15 tweets • 4 min read
The iPhone generates 52% of Apple’s revenue,
but it’s not the future of the company.
Here’s what’s next (and how they created $51.41 billion in value over the last 3 years):
June 29, 2007: Apple releases the iPhone
It is not an overstatement to say it was a world-changing device.
And it reflected in their financials. Revenue by year:
The wrong KPIs can cloud your judgment and lead to bad decisions.
Grab some sticky notes and do this 7-step exercise to choose the right KPIs:
1) Identify a goal you want to reach
Ask: what do you want to achieve?
But many businesses set bad goals.
Use the SMART goals framework to make sure your goals are:
• Specific
• Measurable
• Achievable
• Relevant
• Time-bound
Jun 3, 2023 • 17 tweets • 4 min read
Most business owners get paid last,
which often means you get paid NOTHING.
Use this framework so it never happens again:
As an owner, knowing how much you can distribute is hard.
You want to keep enough in the business to maintain and grow.
But take enough out that you get “rewarded” for ownership.
Jun 1, 2023 • 12 tweets • 3 min read
I quit my day job as a CFO,
and am going all-in on Twitter.
Here’s the monetization blueprint that you can use too:
• Email Newsletter
Social media is rented space. Email is owned.
Get your followers to owned space. I do this by:
- Plugging email under Tweets
- Exchanging recommendations with friends
May 23, 2023 • 12 tweets • 3 min read
Equipment costs have increased by 37% over the last 10 years.
This makes managing them more important than ever.
Here are 9 factors you should consider before replacing equipment:
• Percent of replacement value rule
If the repair costs more than X% of the ERV (estimated replacement cost), buy the new equipment instead.
A common number is 2%, but it can vary widely by industry.
Some could even be up to 50%, figure out industry norms.
May 13, 2023 • 15 tweets • 3 min read
Instead of looking at Profit,
this metric tells you 10x more:
If I could only talk about one concept with business owners it would be this:
Profit DOES NOT equal cash.
Apr 25, 2023 • 13 tweets • 3 min read
When Steve Jobs rejoined Apple in 1997, their revenue was $7 billion and shrinking.
In 2022, they almost surpassed $400 billion, a 224% annual growth rate.
What changed? No, it wasn’t the iPhone…
Here’s how they did it:
Steve Jobs returned to Apple in 1997, at a time when the company was struggling.
They made cuts and partnered with Microsoft for Office for Mac to stabilize the company immediately, but revenue remained flat until 2001.
Apr 22, 2023 • 14 tweets • 3 min read
I’ve spent the last 11 years as a CFO reading Financial Statements.
Let me teach you how to read them in 3 simple steps:
There are three types of analysis when looking at statements:
• KPIs
• Vertical
• Horizontal
Apr 20, 2023 • 12 tweets • 3 min read
Content creation is exhausting and the feed never ends.
But good content systems can save you time and stress.
Here is a 4-part framework to crush overwhelm and become an elite creator:
• Curate
Ideas are everywhere; you just have to be looking.
Things never stop, and it’s easy to “run dry” of ideas.
But good ideas are everywhere.
Apr 18, 2023 • 11 tweets • 4 min read
Amazon is the 5th largest company in the world ($1 trillion market cap),
and became that by cultivating a culture of innovation.
Here are 3 management techniques they use to create that culture (that you can too): 1. Two Pizza Team Rule
Agility and speed are crucial for growth and transformation, but traditional organizational structures stifle this.
To address this, Amazon came up with the concept of the Two-Pizza team: no team should take more than two pizzas to feed them.
Apr 8, 2023 • 13 tweets • 3 min read
Struggle with networking?
Use this system and immediately become elite:
To be a good network you need 2 elements:
• outreach
• follow-up
But most aren’t tracking these. Their systems are non-existent.
Use this system and your life will never be the same:
Apr 6, 2023 • 16 tweets • 4 min read
What Mark Rober, 50,000 of his YouTube followers, and Super Mario Bros can teach us about life:
Mark Rober experimented on 50,000 of his YouTube followers.
He asked his followers to play a puzzle, telling them he wanted to prove anyone could learn how to code.
In reality, he wanted to test their response to different scoring mechanisms.
Apr 4, 2023 • 8 tweets • 3 min read
98% of businesses are underpriced.
60% are underpriced by more than 5%!
For every $1 million, that’s $50,000 to the bottom line.
If you’re reading this tweet, you need to raise your prices.
Here’s how you can do it:
1. Clarify the benefit
Be clear, but concise on:
• Why you’re increasing them
• The value they’ll get at the new price
Communicate as you normally communicate with your customer.
I find in most situations a letter is best.
Apr 1, 2023 • 14 tweets • 5 min read
At the end of each Quarter, I make a point to:
• Review the previous quarter
• Look forward to the next
Use my 5x5 system to dominate the next 90 days:
• What were the 3 biggest wins?
Too often we move to the next thing and don't reflect.
By asking this question it allows you to keep a running list of accomplishments.
It:
- reminds you what you’re capable of when down
- provides you with ammunition for future wins