In this episode of the Lucky 13 Podcast, hosts Mike Lantz and Josh Hauser blend humor and business insight, starting with stories about weddings clashing with college football games. They then dive into practical business finance, highlighting the importance of tracking five key financial metrics: revenue, COGS, gross profit, operating expenses, and net operating income. The hosts discuss strategies for improving profitability, such as managing labor costs, pricing, and cutting unnecessary expenses, while stressing financial transparency and accountability. Listeners are encouraged to review these areas and engage their teams for better business performance.   Weddings vs. College Football (00:00:07) Mike and Josh discuss the dilemma of scheduling weddings during college football season, sharing personal stories and anecdotes. Personal Wedding Anecdotes & Football Loyalty (00:00:54) Stories about friends and family prioritizing football games over weddings, highlighting the cultural importance of college football. Transition to Business Finance & Cash Flow (00:03:27) Shift from weddings to business topics, introducing the importance of cash flow in business profitability. Five Key Financial Numbers Overview (00:05:12) Introduction to the five essential financial numbers every business should track: Revenue, COGS, Gross Profit, OpEx, Net Profit. Explaining Revenue and COGS (00:05:28) Detailed explanation of revenue and cost of goods sold, with examples from different industries. Gross Profit and Its Importance (00:06:35) Discussion on gross profit, its calculation, and why monitoring gross margin is critical for business health. Operating Expenses and Net Profit (00:07:54) Overview of operating expenses (fixed and variable) and net operating income, emphasizing predictability and control. Accrual vs. Cash Accounting (00:09:31) Clarification of accrual versus cash accounting, their differences, and implications for business cash flow. Accounts Receivable and Cash Collection (00:12:00) Importance of managing accounts receivable and the impact of faster cash collection on business operations. Cost of Cash and Credit Lines (00:12:42) Discussion on the value of money, credit lines, and negotiating payment terms with large clients. Ownership of Financial Metrics (00:14:19) Assigning ownership to each financial metric and the importance of accountability in financial management. Levers to Improve Financial Performance (00:16:33) Identifying actionable levers to address issues in revenue, COGS, and other financial metrics. Simple Actions to Drive Cash Flow (00:17:38) Practical steps to improve cash flow: raising rates, renegotiating costs, and adjusting pricing strategies. Avoiding Unnecessary Discounts (00:19:35) The negative impact of excessive discounting on margins and the importance of maintaining value-based pricing. Cutting Costs and Reducing Waste (00:21:06) Encouraging companies to identify obvious cost cuts and reduce waste or rework, including leveraging AI and upskilling. Leveraging Technology and AI for Savings (00:22:35) Exploring alternatives to expensive subscriptions and using AI to find better, more cost-effective solutions. Team Transparency and Industry Benchmarking (00:24:03) Advocating for financial transparency with teams and researching industry benchmarks to set improvement targets.

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