Do you know when it's time to double down on an offer to grow your online business? Maybe you avoid your financial numbers because you're afraid what you might find. If that is you then don't miss this episode with Parker Stevenson of Evolved Finance, a bookkeeping firm that specializes in helping online entrepreneurs to build more profitable and financially stable online businesses.
In this episode Parker shares insights from working with the highest earning online businesses with over $100 million in managed revenue. He will share what the top online business owners do right and how knowing the numbers can maximize your money machine.
Starting an online business can be exciting. It can also be very overwhelming when you realize how many hats you need to wear just to keep the business running.
Business is the process of transferring value which includes providing a product or service in exchange for money. The money machine is how you operate your business so that the revenue exceeds the expenses.
This provides profit. The lifeblood of any business.
When you decide to start your entrepreneurial journey the last thing you are thinking about is managing 'The Books'. The term 'books' is referring to your accounting and bookkeeping for the business. This includes understanding where your sales are coming from and how much it costs to run that business, otherwise known as expenses.
Most people are familiar with profit and loss but why is it that most business owners get scared to look at the numbers and truly understand them?
According to Parker every business owner should understand accounting basics but they should always hire a professional to handle their taxes and bookkeeping.
"I don't think anyone should ever do their own taxes. If you're going to start a business, your responsibility as a business owner is to understand that you're going to have the sunk cost each year of paying an accountant to file your taxes for you. The only time we've ever seen business owners truly put themselves in positions in their business that they wish they never started is when they've tried to file their taxes themselves. Or they trusted someone to do their taxes that wasn't really qualified to do their taxes."
Not every accountant or bookkeeper is going to understand the nuances of your online business. When you hire a team like Evolved Finance they can provide the expertise that is specific to online business. Operating an online business is very different than a traditional business like a dentist office or retail store.
Online business has very specific ways to measure the effectiveness of advertising or the different marketing campaigns that drive sales. By having a bookkeeper that has experience working with top online business owners and manages over $100 million in revenue generated by their clients they can provide insights unlike a typical bookkeeper.
What if you could look at the financial reports from the most successful online entrepreneurs? This information tells a story of not only how revenue is generated but if you look a little closer you will see a consistent theme across the highest performers.
The vast majority of revenue generated in these online businesses comes from one to two offers.
Yes. You read that right.
When Parker looks at the numbers from the top revenue producing businesses it is usually one or two offers that produce 80% of the sales. This might sound ridiculous to some but what they found is the highest performers found an offer that worked and went all in on that offer.
It may take a few iterations and testing different products or services to sell but once they found what sold they doubled down on that offer.
The key takeaway from my conversation with Parker today was that when you find an offer that resonates with your audience, go all in on that offer.
It can be stressful to manage your business finances and it can make you feel ashamed. When you take ownership of knowing your numbers it can provide a sense of comfort that you are in control of your business.
I would recommend registering for the free workshop that Evolved Finance has put together called Know Your Numbers. In this workshop you will learn:
Click here to register for this free workshop today!