Knowing Your Costs Make You Money
Welcome to today’s episode of I Hate Numbers. Knowing your costs makes you money, a statement of the obvious perhaps. The thing with statements of the obvious is we sometimes forget the business basics. In this episode of ‘I Hate Numbers’ I am going to take a real cool way to look at your costs and for you to get great insights into your business. I don’t mean whether they’re naughty, or nice, but how they react according to what your business does.
Why you should know what your costs are
Having a great product, customer focus, working hard, marketing, are all important. Knowing your costs helps you with a lot more, including
- Calculating your profit, current and future
- What prices to charge
- Your break-even
- Putting together your budget
- Controlling what you spend
- Which customers lose you money
Cost Behaviour and Business Activity
Cost behaviour is all about how your costs react and change. We need to factor in business activity to complete the picture. Some of your costs stay the same, whatever your business does; some of costs change, based on what your business does. Listen to find out more.
When you understand your costs more, you’ll inject oomph into your money making. The power of this insight and knowledge is numbers gold
Grab a coffee, make yourself comfortable, sit back and listen. Start looking at your costs and see if you can match make them to your business activity.
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In This Episode
- Knowing your costs makes you money
- Why understanding your costs is a big deal
- Understanding what costs behaviour means
- Developing your own Numbers confidence and decisions
- Take more control of your numbers to help make money