The Fearless Business Podcast

Paul Maskill - business coach, multiple business owner, entrepreneur and host of the Business Owners Freedom Formula Podcast.

Paul works with business owners who are looking to make simple culture changes within their businesses which lead to increased turnover and more freedom.

We discussed a lot, most notably the 5 Mistakes Business Owners Make when it comes to Culture:

1. Using "I", "me" and "my" instead of "We" when referring to your business and team.
2. Delegating tasks without responsibility or understanding of what's involved.
3. Not having team meetings (or checking in with yourself regularly if you're a solopreneur)
4. Delegating tasks without there being proper systems or processes in place.
5. Hiring for talent instead of "family fit" - you can have the best performer but they might alienate themselves from the team and disrupt things too much.

Discover Real-Life Business Insights

Curious about how fellow entrepreneurs are navigating the ups and downs of running a business? One of the best ways to learn is through the authentic experiences of other owners. Dive into a variety of testimonials, client case studies, and personal stories that shed light on both successes and the occasional face-palm moments.

Getting Smart with Financial Planning

Paul and I didn’t just stick to culture and team, money talk inevitably snuck in (as it does). Small business owners wear enough hats to fill a walk-in closet, so keeping an eye on the numbers isn’t just a “nice-to-have.” It’s essential if you want your business to thrive instead of stall.

So what works when it comes to financial planning for growth? Here’s how Paul breaks it down:

• Treat Cash Flow Like Oxygen
  You wouldn’t leave for Everest with half a tank, right? Paul recommends managing your cash flow weekly, know what's coming in and going out, and plan for any hills and valleys ahead. Tools like QuickBooks or Xero can help here, but whatever you use, watch those numbers like you’d watch your fantasy football scores.

• Budgets, Not Just for Big Corporations
  Creating a realistic budget isn’t about being stingy, it’s about giving your decisions a solid foundation. Factor in not just expenses, but also those unpredictable “oh look, the coffee machine exploded again” surprises. Reviewing your budget monthly (not letting it gather digital dust) puts you ahead of the herd.

• Strategic Investments vs. Panic Spending
  Growth often tempts you to throw money at the first shiny thing, Paul suggests the opposite. Every investment, whether it’s hiring, training, or new tech, should align with your long-term vision. Ask, “Will this move the needle a year from now, or is it just a quick fix?”

• Lean on Advice, But Trust Your Gut
  Whether it’s picking up tips from Dave Ramsey or studying Warren Buffett’s moves, learning from others helps. But at the end of the day, your business, your context.

Three quick financial wins Paul swears by:

1. Keep a rolling 90-day cash reserve (breathe easier during lean months)
2. Automate savings for taxes and big purchases, future-you will be grateful.
3. Block a non-negotiable slot each week to review your numbers, no excuses.

Financial planning doesn’t have to be scary or spreadsheet-obsessed. Approach it as a tool for your freedom, the same freedom that inspired you to build a business in the first place.

Financial Forecasting: Giving Your Small Business a Crystal Ball

A lot of small business owners treat financial forecasting like Brussels sprouts, something you know you should do but keep pushing to the back of the plate. But, just like those sprouts, forecasting is actually good for you (I promise, much less mushy though).

At its core, financial forecasting is about peering around corners. It lets you map out where your business is headed, sidestep potholes, and, crucially, plan with genuine confidence instead of crossed fingers.

How Do You Get Started?

• Establish Baselines: Start by digging into your recent sales, expenses, and profit margins. Patterns here are gold.
• Make Honest Projections: Use those patterns to forecast future sales, identify quiet and busy months, and map out expenses you know are coming (annual software renewals, team bonuses, those inevitable coffee machine repairs).
• Scenario Planning: Build in a few “what if” scenarios. What if you land that dream client, or lose your biggest one? What would it mean for cash flow?

Why Bother With Forecasting?

• You’ll spot cash gaps before they hit, giving you time to plan rather than panic.
• It helps you set realistic targets (rather than vibes-based goals).
• Banks and investors love seeing a founder who knows their numbers.

Remember, even giants like Starbucks and Pret weren’t built without some heavy-duty financial napkin-scribbling. You don’t need a crystal ball, just a willingness to look ahead and tweak as you learn.

And, pro tip: apps like Float, Futrli, or even good ol’ Excel will make you look way more organized than you feel.

Here’s how you can connect and grow:

• Listen and Learn: Tune in to candid interviews with business leaders willing to share what worked, what flopped, and everything in between.
• Explore Case Studies: Follow practical, real-world examples of challenges overcome, think like reading the inside scoop on how Patagonia tackles sustainability, or how Ben & Jerry’s churned out a cult following with quirky flavors and activism.
• Get Inspired by True Stories: From garage startups to global icons, personal journeys can spark new ideas and remind you that every business, big or small, faces its fair share of plot twists.

Connecting with others’ journeys isn’t just inspiring; it’s actionable. Armed with these stories, you’ll be better equipped to tackle your own business adventures.

Pricing Strategies to Maximise Profitability

After tackling culture, another area where business owners often leave money on the table is in their approach to pricing. Choosing the right pricing strategy can make all the difference in your bottom line, so let’s break down a few that genuinely move the needle:

• Value-Based Pricing
  Instead of guessing what the market might pay, value-based pricing starts with your customer. Figure out how much value your product or service brings to them (think: time saved, headaches avoided, money made), and price accordingly. Take a leaf from Apple’s book, they don’t just sell a phone; they sell an ecosystem and an experience, which is why they command higher prices.

• Premium Pricing
  This is all about perception. By positioning your offering as high-end, think of the difference between flying standard and splashing out on business class, you attract a different kind of customer. Premium pricing can boost your profit margins and your brand prestige, provided your product consistently delivers on that promise.

• Bundle Pricing
  Everyone loves a good deal. Packaging complementary products or services can entice customers to spend more than they might have on just one item. For example, fast food combos or curated software suites tend to increase the average ticket size, without a lot of extra effort on your end.

• Penetration and Skimming
  Penetration pricing means starting low to attract attention, then raising prices once you have a loyal base. Skimming is the opposite, launching high, grabbing early adopters (think new gadgets), and reducing your price later to reach the masses.

If you’re unsure where to start, test and track. Profitable pricing is rarely set-it-and-forget-it; it should evolve as your offers, audience, and positioning do.

Advanced Financial Metrics for Small Business Success

So, what numbers should you actually keep an eye on if you want your business to thrive, not just survive? Beyond the typical profit and loss statement, there are a few advanced financial metrics that can give you deeper insights and help you make smarter decisions.

Here are some worth tracking:

• Gross Profit Margin: Not just your overall profit, but how much you’re making after the direct costs of delivering your product or service. A rising margin often means you’re pricing well and managing costs.
• Operating Cash Flow: Forget paper profits for a second, look at the cash actually coming in and out. This helps you see whether you can cover your day-to-day operations without digging into reserves or jumping through flaming hoops for a loan.
• Customer Acquisition Cost (CAC) and Lifetime Value (LTV): Knowing what it costs to land a new client, versus what they’re likely to spend over time, can save you from betting the farm on expensive marketing strategies.
• Accounts Receivable Turnover: How quickly do your clients actually pay? Tracking this can nudge you to tighten up your invoicing or follow-up systems, especially if cash flow feels like a leaky bucket.
• Inventory Turnover: For those with products, this tells you if your stock is working for you or collecting dust. Too slow? Time to rethink what you’re ordering or how you’re selling.
• Break-even Analysis: This simple calculation helps you pinpoint exactly how much you need to sell each month before you stop losing sleep and start making real money.

Most importantly, regularly reviewing these metrics lets you spot trends, course-correct early, and ultimately build a business that works for you, not the other way around.

The Profit Plan: Setting Your Business Up for Sustainable Success

What exactly is a Profit Plan for business owners, and why does it matter? Let’s break it down, minus the usual jargon and with a healthy dose of real-world practicality.

At its core, a Profit Plan is your business’s blueprint for making sure that, after all the dust has settled, there are actual profits left in the bank, without sacrificing your sanity or customer experience along the way. Think of it as combining elements of Michael E. Gerber’s systems thinking with a “money-first” focus.

Here's how it typically shapes up:

• Intentional Revenue Goals: You start by setting clear profit targets instead of a vague “let’s see how the year goes.”
• Reverse Engineering Expenses: Rather than blindly spending and hoping there’s something left over, you work backwards from your desired profit and only allocate funds where they matter most.
• Built-in Profit Allocations: Inspired by frameworks like Profit First (by Mike Michalowicz), the Profit Plan ensures you’re regularly siphoning off profit, treating it as a non-negotiable, not an afterthought.
• Systems for Monitoring: You create reliable checkpoints (monthly or quarterly) to track your progress, tweak your systems, and keep yourself and your team accountable.
• Freedom through Structure: Because once profit isn't accidental, you can focus on growing the business and enjoying your freedom, rather than putting out fires.

In short, a Profit Plan is about being proactive rather than reactive. It’s how you move from hope-based bookkeeping to true financial freedom, freeing up your time and energy to lead, innovate, and maybe even take that much-needed vacation.

The Four Core Principles of Putting Your Business Profit First

When it comes to building a sustainable business that actually generates freedom, not just revenue, Paul champions the idea of putting your profit first (big tip of the hat to Mike Michalowicz here). It’s a straightforward but radical shift in mindset and operations. Here’s how it breaks down in practice:

• Prioritize Profit, Not Just Revenue
  Instead of focusing on sales and hoping there’s something left at the end, set aside your desired profit before allocating money to expenses. This makes profit a non-negotiable rather than an afterthought.

• Allocate Funds Using Separate Accounts
  Use dedicated bank accounts to divvy up your income into profit, owner’s pay, taxes, and operating expenses. This creates accountability and helps resist the temptation to overspend.

• Operate Within Realistic Limits
  Regularly review what's actually available in your operating expenses account. This keeps you vigilant and inventive, forcing you to streamline costs rather than mindlessly scaling up expenses with every new sale.

• Build Consistent Habits
  Make financial reviews and allocations a routine part of your business rhythm. Whether it's a weekly or monthly practice, this habit ensures you’re always steering the ship, not just reacting to financial fires.

These principles aren’t just about bookkeeping, they’re about creating a culture where sustainability and freedom are baked into the business from day one.

What to Expect from a Profit First Coaching Program
Jumping into a Profit First coaching program is a bit like giving your business GPS navigation for its finances, except with fewer wrong turns and more celebration stops.

Here’s what you’re in for:

• Practical Systems: You’ll learn to set up bank accounts according to the Profit First method (think “profit” and “tax” accounts), making sales deposits less mysterious and surprise bills less terrifying.
• Hands-On Guidance: Coaches walk you through how to actually implement the Profit First framework, so you don’t have to read the book twelve times or guess what “real revenue” means.
• Mindset Shifts: Expect some “a-ha!” moments as you realize you really can pay yourself first (without making your accountant cry).
• Accountability: Regular check-ins, tweaks, and moral support help keep your business on that profitable track, even when pizza Fridays beckon.
• Personalized Advice: Your business is uniquely yours, so you’ll get tailored action steps and troubleshooting for your own quirks.

In short, a Profit First coaching program helps transform those “Where did all the money go?” moments into “Look at what we just achieved!” milestones, without needing a finance degree or a magic wand.

Understanding the Profit First Method

If you’ve ever found yourself wondering where all the money goes at the end of each month, the Profit First method might just be the missing piece of your financial puzzle. Developed by Mike Michalowicz, this system flips traditional accounting on its head: rather than treating profit as an afterthought, you prioritize it right from the start.

Here’s how it works in practice:

• Prioritize Profit: Instead of the familiar equation (Sales – Expenses = Profit), Profit First suggests you take your profit out immediately (Sales – Profit = Expenses). By doing so, you ensure your business pays itself first, much like saving before spending in personal finance.
• Set Up Multiple Bank Accounts: To make the system foolproof, businesses typically maintain separate accounts for profit, owner’s pay, taxes, and operating expenses. Each incoming deposit is divided by predetermined percentages, allocating funds to each account, so you always know exactly what’s available, and for what purpose.
• Discipline and Clarity: This method encourages regular, scheduled allocations (often twice monthly), fostering healthier cash flow management and greater financial discipline.
• The Four Core Principles: The foundational ideas behind Profit First include small plate theory (restricting available cash), routine distributions, removing temptation (by keeping profit out of sight), and enforcing a rhythm so your business finances run on autopilot.

It might sound deceptively simple, but thousands of business owners have found that putting profit at the forefront leads to better decisions, less financial stress, and, yes, even actual profit. If you’d like actionable guidance, the “Profit First” book and community resources are worth exploring.

Paul is an avid fan and implementer of the eMyth by Michael E. Gerber:
https://www.amazon.com/Myth-Revisited-Small-Businesses-About/dp/0887307280

And Paul's top tip for budding entrepreneurs is to "Avoid following the status quo, and do things regardless of what other people are telling you to do; the positives normally vastly outweigh the negatives".

Check out Business Owners Freedom Formula Podcast:
https://podcasts.apple.com/gb/podcast/business-owners-freedom-formula-actionable-advice-for/id1225076443

And finally if you want to get a hold of Paul here's his website: https://paulmaskill.com/mastermind

And email address: paul@paulmaskill.com

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