Your business will only go as far as your finances take you. Without the proper systems in place, metrics like revenue and sales may be completely irrelevant, and your business could actually be losing money even when increasing sales.
There’s perhaps no topic less discussed and more important in entrepreneurship than the accounting side of a small business. So let’s talk about it!
On episode 32 of the 7-Figure CEO Podcast, host Casey Graham welcomed Kahuna Accounting Founder and CEO Frank Lunn to the show to talk about his journey and entrepreneurial finances.
Lunn’s twenty years of entrepreneurship have consisted of many ups and downs, and many of those came from financial lessons learned. The ATM side of Kahuna Business Group was earning $20M in annual revenue, but due to not having proper metrics and ways of measuring growth in place, this was a vanity metric, meaning actual profits were not nearly as high as they could’ve been with careful financial planning.
Lunn is seeking to build Kahuna Accounting into a $100M business. When asked by host Casey Graham why $100M was his goal, Lunn replied that entrepreneurs need to “think backwards.” With an end goal in mind, he is able to build a plan and a team around the steps that will be needed to achieve that goal.
This intentional approach is vital to small businesses according to Lunn. “If you’re trying to just get by…you’ll never build anything of consequence,” he continued. This intentional approach is what Kahuna believes in when working with small business clients through Kahuna Accounting – a virtual accounting team that specializes in working with entrepreneurs and small and solo law firms.
If you’re not intentional about your business and finances, Lunn believes, “You just kind of end up where you are.”
Graham and Lunn covered several topics related to the finances of entrepreneurs, including three of the most important terms every entrepreneur should know. Check out the full episode here:
The 7-Figure CEO Podcast is “the first and only podcast to focus on interviewing leaders of companies over 7 figures revenue. The goal is simple: to help you break through the existing barriers in your company. We will talk with owners of 7-figure companies and only talk practical details about how they got there.” The podcast is hosted by Founder and CEO of The Rocket Company, Casey Graham.
Do you know where your business is headed? Discover what options your small business has. Bookkeeping for Small Business: Six Options for Entrepreneurs.