Episode 043 – Knowing Your Cost Drivers, Balancing the Equation and Staying Profitable, with Ruth King
Ruth King is the Profitability Master, Founder and CEO of Profitability Revolution Paradigm. She is also President of Business Ventures Corporation. She has a passion for helping small businesses get and stay profitable. Her #1 Best Selling book, The Courage to be Profitable, explains how to get and stay profitable in less than 30 minutes a month – in English rather than accounting babble.
To break the ice, I asked Ruth, whether she’d rather have many acquaintances and no friends, or have only one or two close friends?
Her response, “One or two close friends.”
We went on to talk about what every entrepreneur needs to have more of, profit, profit ad more profit.
Some questions I asked throughout the interview are:
- How did it all start for you as the profitability master?
- What are the things we need to be looking out for in balancing the equation of profit and cost?
- What are some considerations business owners need to be making in order to grasp accounting?
- What’s the reason businesses fail to make profit?
- What’s one of the biggest cost driver in a business?
- Why would a once profitable business start to experience decline in profit?
Understand that financials are not hard. accounting was developed around the 1300s and there were no calculators back then and it was easy.
If you are getting bored with your business, it will decline because you are not paying attention.
Get your financial statements every month; get a profit and loss statement and balance sheet. Get tutored on it, read a book, go to a class.
RESOURCE TO PEAK YOUR PERFORMANCE
Connect with Ruth King
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