Episode 2

full
Published on:

12th Nov 2024

Think Of Your Business As A Garden

How does YOUR 'garden' grow?

"Think of your business as a garden," I tell people.

It helps take the complexity out of the financial jargon.

Where you are today with your business may not be where you want to be tomorrow, but it’s shaped by the seeds you're planting today.

Hi, I'm Mahmood Reza from Numbers Knowhow and in this episode of the Numbers Knowhow podcast, I've boiled it all down to simple terms.

Whether you’re just starting out or trying to scale to new heights, understanding the fundamentals like revenue, profit, expenses, cash flow, assets, and liabilities is crucial.

Think of them as the vital elements for nurturing your business garden.

By the end of this episode, you'll have a clearer picture of what it takes to grow a healthy, profitable business.

You’ll feel more in control and less overwhelmed, enabling you to make better financial decisions.

Remember, we’re here to help you Plan It, Do It, PROFIT.

Transcript
Speaker:

Think of your business as a garden.

Speaker:

Imagine your business is a garden. Just like plants need

Speaker:

water and sunlight, your business needs money to grow. But in the

Speaker:

business world, money has its own language. Financial

Speaker:

jargon. Let's break it down simply. Revenue.

Speaker:

It's those seeds that you plant. Revenue is the money

Speaker:

your business earns from selling products or services. And just

Speaker:

like seeds, the more you plant, that is sell, the bigger your

Speaker:

garden. That is your business will grow. Profit. Think of that

Speaker:

as the fruit you harvest. Profit is what's left after you pay

Speaker:

for everything else. Think water, think soil, think

Speaker:

tools. It's the reward for all your hard work. No

Speaker:

profit, no harvest expenses equivalent

Speaker:

to the care that you give. Expenses are the costs of running your

Speaker:

business. Just like water and fertilizer for your

Speaker:

plants, these are necessary to keep your garden healthy. And you

Speaker:

don't want to overspend. Cash flow. Just like the weather

Speaker:

forecast, cash flow is the movement of money in and out

Speaker:

of your business. Just like you watch the weather, know when to water

Speaker:

your plants you need to watch. You need to track your cash

Speaker:

flow to ensure your business has enough money to

Speaker:

thrive. Assets. It's the tools in your shed.

Speaker:

Now, assets are the valuable things that your business owns.

Speaker:

The equipment, the inventory, or even patents.

Speaker:

These help you to keep your garden that is your business running

Speaker:

smoothly. Liabilities. Those are the weeds in your

Speaker:

garden. Now, liabilities will represent what your

Speaker:

business owes. The loans, your bills. Just like

Speaker:

weeds, you need to manage them carefully so they

Speaker:

don't take over. We wouldn't want that, would we? By

Speaker:

thinking of your business as a garden, financial jargon

Speaker:

becomes easier to understand. Keep your garden well

Speaker:

tended and your business will flourish.

Next Episode All Episodes Previous Episode

Listen for free

Show artwork for From Creative Passion To Profit

About the Podcast

From Creative Passion To Profit
From Creative Passion To Profit: the podcast dedicated to empowering individual artists and creatives with the financial and business knowhow needed to thrive
In the creative world, passion and talent are essential. But understanding the business side is fundamental for sustained success. "From Creative Passion To Profit" bridges the gap between creativity and commerce, providing you with the tools to manage your finances, develop marketing strategies, and grow your entrepreneurial mindset.
By focusing on practical financial and business advice, specifically for individual artists and creatives, this podcast will provide valuable and focused support.
Each episode delves into topics such as crafting a winning business plan, demystifying taxes, pricing your work confidently, and overcoming the starving artist mentality. Our goal is to equip you with actionable insights to make informed decisions, ensuring your creative practice not only survives but flourishes.
Join us as we explore the intersection of art and business, helping you turn your passion into a profitable and fulfilling career. Subscribe today and take the first step towards mastering your creative enterprise with From Creative Passion To Profit!

About your host

Profile picture for Mahmood Reza

Mahmood Reza

Hi, my name is Mahmood, accountant, educator and author of the book, I Hate Numbers !!
I actually love numbers and what they can do for my business – and every business - but I come across so many people who have a real fear of numbers/maths/accounts (and accountants), and therefore, their business struggles to survive, never mind thrive. If only they knew how to get a fondness and some kind of control of those numbers!
Why am I so passionate about all of this stuff I’m putting out into the public domain? It’s my belief that once you understand what your numbers are, where they come from, and what they mean, you can use them to make better decisions and ultimately make (or keep) more money. What every business owner wants, right?
The one thing I’ll always guarantee you, is that whether you’re the CEO of a global corporation, or a market stall trader in your local town, your numbers matter – and you simply can’t get away from them. This book is your chance to get them all in one place, face your fears, and start making those numbers work for you.