This week Dave and I sit down for a chat about building the Assets and minimizing the Liabilities in your business. As with regular business, in the bootstrapped entrepreneurial space Assets are things that give you either more time or more money. Conversely, Liabilities are things that consume unproductive time in your day or cost money that does not contribute back to your business.
The key in optimizing your business is make strategic choices that will maximize your business assets and minimize your liabilities.
A good MicroConf talk on this was given by Ted Pitts on this and the subject that seems to be missing from the startup conversation: Profit Margin. In Ted’s talk he pointed out a few key points on the subject of assets and liabilities:
- “Profit is your margin for error”
- If you don’t have profit — and a problem happens — it can cause real damage
- Revenue per employee: $250/employee
- Profit Margin: 30%
Here are a few key resources mentioned in the show today:
- WordPress Knowledge Base Theme – WP theme you can use to create an internal or customer facing knowledge base and process wiki.
- Jing – Screencast recording software, easily shareable. Great for onboarding and training
- Drip – email marketing software chosen by both Dave and Craig for their business
- Josh Pigford’s Medium article on essential business tools.
- Xero – cloud based accounting software
Also, check out the sidebar (hey, look to the right!) and leave us a voicemail. We’ll play it live on the show next week. Look forward to hearing from you.
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