Career change in the Greek Labor Market (episode 09)
Focusing on: Revenue & Expenses, projections & bottom line P&L.
Testing. Checking the numbers and Testing. Doing the Math.All of them, needed and crucial.
You get your services or products designed and created, you get your business operating model designed and recorded.
You start considering friends, foes, network, marketing, campaigns, social media and digital presence. All is good! Yet all these must have a solid foundation of feedback and data supporting them.
One must do the math.
One must test the numbers.
One must project the costs and the expenses.
One must project the Revenues.
A budget is needed! One that leads to a Budget P&L, one that shows a bottom line result.
IF the bottom line result (on a budget basis) is a negative one, things must change! All issues need a double check and all aspects are “under attack”, everything is open to discussion and revision.
For such a process to be successful, One must know or learn all related (basic) concepts of the following:
- What is an Expense.
- What is a Cost.
- What is a Revenue.
- What the Cost of Goods Sold is (COGS).
- How is COGS calculated.
- What is a P&L (Profit and Loss statement).
- How is a P&L built.
- What is a Revenue Stream and what is a Cost Stream.
Finally, how all these are bound together, with the business model and the business processes.
Feels like a a “dinosaur”-concept , too old style to be still valid, but “bean counting” never hurt anyone! On the contrary, executed properly, It has saved lives, jobs, assets, and fortunes in the past (and keeps saving…).
Thank you so much.
IV