Stop Leaking Profit: Insights from Business Coach Cath Vincent

May 15, 2024

Every business, no matter how successful, experiences some level of profit leakage if the proper systems and processes are not in place. In her interview on the Women on the Rise podcast, business consultant Cath Vincent shares valuable insights on how small business owners can identify and plug the sources of leaked profit that are holding them back from greater growth and profitability.

Cath emphasises that profit leakage occurs not just in monetary terms, but also through the loss of valuable time and energy. As businesses scale up quickly, owners often outgrow their original systems and procedures without updating them accordingly. Tasks get neglected, unnecessary costs slip through the cracks, and valuable time gets wasted on low-value activities.

One key area Cath focuses on is analysing cash flow and expenses in detail using accounting tools like Xero. She encourages business owners to get comfortable with numbers by thinking of them not as intimidating financial data, but as representations of their desired lifestyle. By asking questions about where every dollar goes, opportunities to optimise processes and cut wasteful spending become apparent.

Delegating tasks is another important strategy Cath discusses. As workloads increase, owners often take on responsibilities that others could handle more efficiently. However, learning to delegate involves starting small, keeping initial tasks low-risk, and gradually increasing responsibility over time. It also means accepting that not everyone will do things exactly as the owner would.

Cath also stresses the importance of annual planning that accounts for seasonal variations. Many businesses experience dips during holiday periods without realising it's an annual pattern. Taking 30 minutes to map projected cash flows and key dates prevents last-minute financial stress.

Finally, Cath advises being selective about opportunities by prioritising what aligns with essential criteria like enjoyment. Saying no to distractions preserves bandwidth for high-impact work. Both she and Jen also share experiences of focusing deeply on their most valuable offerings to achieve greater success.

Overall, Cath provides a wealth of actionable tips for analysing profit sources and sinks, optimising processes, and creating a business structure aligned with work-life goals. Her frameworks aim to help small businesses stop profit from going down the drain.

Click here to watch the full episode!

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