A Deep Dive into CBFS Finances: Insights into Profit Margins and Financial Goal Setting
In this episode of the CEO Wingwoman, Christy dives into the world of business finances. Christy shares her year-long journey since launching her business, starting from the early challenges and learning curves to building a robust clientele and navigating seasonal income variations. Throughout the episode, Christy shares her primary focus: achieving a half-million-dollar business with a 40% profit margin. Through Christy’s candid exploration of her financial ups and downs, this episode encourages listeners to embrace transparency in their own financial lives, emphasizing that the road to financial success is a continuous journey marked by growth and learning. Strap in as we explore her income, expenses, and the strategic decisions she's made along the way.
Listen in as we speak about:
The Year in Review: A Journey of Growth
Understanding the Reasons Behind the Numbers
Balancing Growth and Personal Income
And much, much, more!
The Year in Review: A Journey of Growth
Christy started her business in May 2021, and now, after a year and a half, she's ready to break down the numbers. The first thing that becomes apparent is that her business has had its ebbs and flows. Like many businesses, it's not a straight upward trajectory. There have been highs and lows, and Christy is here to be transparent about it all.
Christy's initial goal was ambitious: build a half-million-dollar business with a 40% profit margin within three to four months. However, as the year progressed, she realized the importance of reevaluating goals. She acknowledges the need to balance growth with personal life and maintains that being adaptable and realistic with your goals is essential for long-term success.
Understanding the Reasons Behind the Numbers
Christy emphasizes the importance of understanding the reasons behind the numbers. Instead of simply meeting or missing her financial goals, she believes in analyzing why those results occurred. In her case, she found that some expenses were necessary investments in her business's future. Christy shares her business's financial ups and downs month by month. Starting with a challenging January, she faced a negative profit margin due to high expenses, including legal fees and training costs. February saw improvements with new clients, resulting in a 26 percent profit margin. March's income received a boost from tax-related work, but expenses offset some gains, leading to a 47 percent profit margin.
April marked a shift in strategy as Christy started paying herself, resulting in a 32 percent profit margin. In May, she reevaluated goals and began trimming expenses, achieving a 13 percent profit margin. June saw her intentional expense reduction pay off, reaching a 17 percent profit margin. July laid the foundation for future growth despite a temporary slowdown. August was a standout month with a 55 percent profit margin, attributed to strategic decisions made earlier. September continued the trend of growth and success, with revenue exceeding $16,000 and the business expanding.
Balancing Growth and Personal Income
Christy's journey highlights the importance of balancing business growth with personal income. She demonstrates that it's essential to analyze and adapt along the way. As her business continues to evolve, so does her approach to finances. With a new team member onboarded in October 2023, Christy and Christy Bowie Financial Solutions is poised for even greater success in the months ahead.
Christy's story serves as a reminder that every business faces its ups and downs, and financial transparency can empower entrepreneurs to make informed decisions that lead to long-term success. Tune in next time as we explore strategies for taking home more of your hard-earned money in 2024.
Connect with Christy Bowie Financial Solutions:
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