When there is an aspect of our business that we don’t understand, we tell ourselves it’s because the subject matter is too confusing or too complicated.
While there definitely are areas of expertise like computer programming or law that take a lot of specialized knowledge to understand fully, we can easily outsource this type of work to experts. But when it comes to things like finance, most entrepreneurs overthink and over complicate it because they lack a basic foundational understanding of the role finance plays in their businesses.
Is that because finance is complicated?
It’s just difficult to find financial information that’s specifically applicable to online business owners.
So when an online business is struggling with something like profitability, it’s easy to get overwhelmed about what to do. You might even think that you aren’t capable of fixing the problem yourself. Luckily, the reason that any business struggles to stay profitable only comes down to two very simple factors.
So for this episode, we discuss:
What a profitable online business really looks like
The two reasons why an online business struggles with profitability
Why it’s so hard to fix profitability issues in an online business without financial clarity
How proper bookkeeping makes tracking your profitability a breeze
How your P&L can help your online business to become more profitable