Chip and Gini discuss the basic financial reporting that every agency owner should have ready access to and systematically review on at least a monthly basis.
Knowing the numbers may not be the most exciting part of being an agency owner, but it is essential to understanding the business and positioning it for profitable growth.
In this episode, the hosts explain various financial terms and why specific reports may be useful. They also describe what to look for when reviewing these documents.
- Gini: “I will admit that when I started my business, and people were talking about P&Ls, I had no idea what they meant. I’ll admit that.”
- Chip: “If you’re in business long enough, as an agency owner, you’re effectively getting an on the job MBA.”
- Gini, on creatively getting around big companies’ payment policies: “Some of the pushback I get from other agency owners is well, I work with big companies such and such, and they won’t work that way. That’s baloney.”
- Chip, on the importance of getting started using accounting tools: “…a lot of agencies do not have their houses in order with these reports. The important thing is to start getting at least the basics correct. And then you can bite off more and perfect it.”