Interior Designers: Love Your Numbers!
By Gail Doby, ASID
CVO & Co-Founder, Gail Doby Coaching & Consulting & Design Success University
Today we’re sharing a quick quiz you can take without anyone seeing your answers. Take just a few minutes and discover your personal Financial Savvy Score.
Give yourself a 1 for each YES and a 0 for each NO:
1. YES NO You know the difference between net profit and net margin.
2. YES NO You know what it costs to operate your business each month.
3. YES NO You know the difference between mark-up and margin and why it matters.
4. YES NO You know your Assets to Liabilities ratio and why you need to know.
5. YES NO You know what net margin you should be earning.
6. YES NO You earn more than your employees.
7. YES NO You know how productive your employees need to be as a % of their time.
8. YES NO You have a budget.
9. YES NO You plan for all major expenditures.
10. YES NO You use a cash flow projection to manage your business.
11. YES NO You know how to read your financial statements and look forward to seeing them each month.
12. YES NO You’re earning six-figures in your business.
13. YES NO You know how much you need to have in your reserve funds for your business.
14. YES NO You know how much of the money that is in your bank account(s) is actually profit.
15. YES NO You meet with your CPA each quarter to review your projected revenue.
16. YES NO You know what percentage of projected revenue you should allocate for marketing.
17. YES NO You measure your “Return on Investment” (ROI) of each investment you make in your business.
18. YES NO Your bookkeeper prepares monthly reports and reviews them with you.
19. YES NO You know the definition of each of these terms: revenue, gross profit, and cost of goods sold.
20. YES NO You feel calm and confident about your numbers and financial knowledge.
Total Score _________
18 – 20 You’re A Financially Savvy Genius
16 – 17 You’re on your way to being Financially Savvy
14 – 15 You know enough to be dangerous – you have basic financial knowledge
10 – 14 You need financial training to become confident with your numbers
Below 10 Time for school!
Why should you drop everything to be here? This is the answer to increasing your income, becoming confident with your numbers and finally earning what you deserve. Aren’t you worth it?