E147 - Minding Your Gross Margin: How to Bring in More Money As You Scale | with Terrell Turner
Episode 147 •
23rd July 2021 • The One Big Tip Podcast with Jeff Mendelson • Everyone has that One Big Tip!
Terrell Turner is a CPA, an experienced financial leader, and a content creator focused on making complicated money topics simple and easy to understand. He’s also a partner in the TL Turner Group, where he provides fractional CFO services and helps clients make smart money decisions. Today he’s sharing one major tip for anyone looking to scale their business.
Terrell says the key to scaling smart is keeping your gross margin in mind. This is the money that’s leftover after you’ve subtracted everything it cost you to deliver a product or service from your sales price, and it can be used to cover overhead costs and invest back into your business.
In this episode, Terrell not only explains exactly what gross margin is and why it’s important to keep in mind when setting your prices, but he also shares tips for increasing it and ensuring you’re staying smart as you scale. You’ll learn how to calculate your gross margin, figure out the best financial moves to make, adjust your prices as needed, and bring in money to invest back into your business as it grows bigger than ever.
In this episode:
[1:47] Terrell gives us a look at his background and explains how he came into his career as a fractional CFO.
[3:06] Don’t quite understand the difference between accounting and finance? Terrell breaks it down: finance applies accounting knowledge to develop plans and strategies.
[6:07] Terrell’s one big tip is to scale with gross margin in mind. He explains exactly what this means, why it’s important, and how it can be implemented.
[9:35] Want to increase your gross margin? Terrell shares a process: Figure out which of your products or services have the highest gross margin and how you can market them more, then take a look at how you can raise the gross margins of your other products.
[10:47] Terrell suggests developing base-level products and premium ones that cost more to save you money and increase your gross margin.
[13:56] Still want to go above and beyond with your services while keeping an eye on costs? Terrell explains how you can.