3 Red Finance Flags Every Business Owner Should Recognize

Brandee Gaar

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Brandee is a proven sales + profit strategist with a decade-long track record for helping wedding professionals transform their businesses from expensive hobbies to thriving careers.

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Is High Debt Killing Your Wedding Business?- here’s the 3 financial red flags that every wedding pro should know ft. Danielle Hendon

Wedding pros don’t get into the wedding industry to become financial gurus, right??

You get into the wedding industry to serve people.

But what we don’t realize until we’re in the the thick of it is that without the financial aspect of there is no business!

So that’s what we really need to talk about!

We often talk about the profit and loss and what to look for and how to run it, but we rarely talk about the balance sheet.

And that is why Danielle is here to give us all the amazing golden nuggets!

Danielle covers these 3 finance red flags:

#1: High Debt Load

The first red flag is having a significant amount of debt on your balance sheet, which can hinder your cash flow and overall financial health. We discuss the difference between good debt (strategic investments) and bad debt (unplanned or high-interest debt) and offers tons of advice on managing debt effectively!

#2: Not paying yourself a salary

The second red flag is not paying yourself a reasonable salary. The goal is for you to pay yourself at least 50% of your net revenue after accounting for revenue-generating expenses. This will get you into a healthy financial habit of paying yourself a salary and also ensures an income for you from your business.

#3: Negative Retained Earnings

The third red flag involves negative retained earnings on your balance sheet. This means that you’ve taken more money out of the business than it has generated over time, often due to debt repayment. We dive into different strategies for addressing negative retained earnings and improving overall financial stability.

Tune in to hear more about the 3 red finance flags you should recognize right away!

Grab Danielle’s free workbook: “Guide To Review Your Expenses”

Connect with Danielle:

@4cornerscfo

4 Corners CFO

Watch full episode here!!