Shownotes
In today's episode, we tackle a common question among business owners: are your financial numbers good, and how can you adjust them for better profitability?
Learn how to assess if your financial numbers are on the right track and learn how to optimize them for greater profitability using the 30-50-20 rule. We'll break down this essential guideline, especially beneficial for soloist businesses, into manageable percentages of revenue: 30% for operating expenses, 50% for owner pay, and 20% for taxes. We also explore the critical adjustments needed for product-based or agency models and the significant impact of not meeting these benchmarks, such as increased operating expenses and pricing issues. This episode is packed with insights designed to help you re-evaluate and potentially transform your financial planning to achieve your business goals.
In this episode, we cover:
- The 30-50-20 rule, a simple yet effective way to manage your finances by dividing your revenue into three key buckets: 30% for operating expenses, 50% for owner pay, and 20% for taxes.
- The implications of not meeting these benchmarks, such as higher operating expenses due to low revenue or insufficient pricing.
- How to adjust these percentages for product-based or agency models.
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Find the complete show notes here: https://hansenllc.net/the-30-50-20-rule-for-your-finances-episode-28
