Once Your Business Starts Making Money, Upgrade These 5 Things Immediately

Number one, your view of the numbers.

And by that, I mean proper monthly accounts.

A real P&L.

Not checking your bank balance in the morning and going...

Yeah, looks all right.

Because revenue is very, very good at fooling you.

You have one big month and you feel like a genius.

But revenue on its own doesn't tell you your gross margin, what it actually costs you to deliver the thing that you sell.

And it definitely doesn't tell you what you've got left at the end once everything else comes out, which is your net margin.

And that big month, that's exactly when people start overspending.

They hire too early, they take on more costs, and a few months down the line, they are sat with this bloated business going, where the hell did all that money go? And this is why you see so many revenue screenshots online and pretty much zero P&L screenshots.

Once you've got monthly accounts, you can start forecasting.

You can look at the numbers and go, okay, if we keep growing at this rate, this is roughly where we'll be three months from now.

And that's what lets you hire properly at the right time and the right roles.

And this was massive for us.

I mean, massive.

The first time, We started forecasting three months ahead.

I just had so much more confidence in the business.

We hired more aggressively because of it.

And the growth that came after it was much, much bigger than before because, and I think this is pretty much true for every business owner I know, We've got loads of clarity on today and pretty much none on where we are going.

And that uncertainty, it just makes you second guess everything.

And so you play it safe.

Forecasting fixed that for me.

And you can't forecast without a good P&L.

Simple as that.