Fractional CFO Services: Growing Your Business with a Fractional CFO
Welcome to a world of financial transformation. In the realm of modern business, where growth is...
By: Shane Bender on Dec 12, 2024 10:16:15 AM
We all have blind spots. Whether in life or business, these unseen obstacles can keep us from achieving our full potential. Over the years, I’ve realized that addressing these blind spots can be the difference between a business that survives and one that thrives.
In my experience working with small to mid-sized businesses, three financial blind spots stand out as the most common—and the most damaging. Let’s explore these pitfalls and, more importantly, how to overcome them.
Pricing can make or break your business. Yet, it’s an area where many business owners hesitate or struggle. One key question to ask yourself is: What price point are you competing at?
There are typically three approaches to pricing:
Beyond strategy, your gross margin—the difference between sales revenue and the cost of goods or services sold—is critical. Analyzing your margins can help you identify which services or clients are most profitable and whether your pricing reflects the value you’re delivering.
Another factor to consider is inflation. Incremental price increases, done regularly, can help you stay ahead without causing a customer revolt. It’s much easier for customers to accept small adjustments over time than a large hike all at once.
Even profitable businesses can run into trouble if they don’t manage cash flow effectively. Cash is the lifeblood of your business, and poor cash management can lead to unnecessary stress—or worse.
Here are three key areas to focus on:
Having clear, measurable goals is essential for success, but it’s not enough. You need a financial strategy that aligns with those goals and ensures you’re tracking progress along the way.
One of the best frameworks I’ve found is the SMARTER Goals method from Michael Hyatt's The Best Year Ever. This takes the familiar SMART goals (Specific, Measurable, Actionable, Relevant, Time-Bound) and adds two key elements: Risky and Exciting. Goals should challenge you, but they should also inspire and energize you.
Once your goals are set, it’s crucial to regularly assess and adjust. In the fast-paced world of business, things change quickly. Evaluating what’s working, what’s not, and making adjustments is key to staying on track.
Finally, consider bringing in an advisor to help you uncover blind spots. Sometimes, an outside perspective is what you need to see what’s not working and find the best path forward.
The trouble with blind spots is that you can’t see them. But that doesn’t mean they have to hold you back. By addressing misaligned pricing, improving cash flow management, and creating a financial strategy tied to your goals, you can build a stronger foundation for your business.
If you’re ready to tackle your financial blind spots and take your business to the next level, let’s talk. At Bender CFO Services, we specialize in helping business owners achieve clarity and confidence in their financial strategies. Schedule an introductory meeting and together, we can turn your blind spots into stepping stones for growth.
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