Hope everyone is ready for Christmas, because I'm not. 🫠
You know what I am ready for? 2025. We have our financial plan all set for January and are ready to hit some big goals.... Are you ready?
So let’s talk numbers. Profit isn’t something that happens by accident; it’s the result of intentional planning. When you set clear financial targets, you gain control of your business decisions—pricing, hiring, project selection—and ensure every move supports your profitability goals.
At Brex, we used to think profit was something we’d discover at the end of the year. But after one particularly tough year where expenses outpaced income, we knew we had to change. By setting clear revenue and profit goals, and breaking them into quarterly benchmarks, we turned things around. Now, profit isn’t a surprise—it’s a plan we execute.
Why Financial Targets Matter
Without financial clarity, you’re leaving money on the table and taking unnecessary risks. Here’s how to set yourself up for success:
1. Set Revenue Goals
Decide how much you want to earn in 2025. Start with a realistic but ambitious number.
Control revenue through understanding your bid win rate. If you know how often you win a bid, you can control how much you bid.
2. Determine Your Profit Margin
What percentage of revenue do you want to keep as profit? This will guide your pricing and cost controls.
Understand what is average for your industry. You shouldn't plan for 30% profit, if your industry average is 10%.
3. Budget for Overhead
Know your fixed costs and make sure they’re sustainable. This helps you grow without overextending.
Items often forgotten in overhead is maintenance cost, non-project labor, and time spent on training.
Brex in Action
For Brex, setting financial targets helped us make smarter decisions about pricing. When we realized our margins were slipping, we adjusted our bids and identified areas where we could cut costs without sacrificing quality. By aligning our overhead with our revenue, we gained clarity and confidence in every project we took on.
This Week’s Challenge
Take an hour this week to outline your revenue and profit goals for 2025. Break them down by quarter to make them more manageable. Remember, a plan doesn’t just predict your profit—it puts it in action.
Plan for Profit
When you know your numbers, you gain the clarity to make better decisions. Whether it’s pricing, hiring, or project selection, everything becomes more intentional. PRIMED for Growth is here to guide you through the process—don’t miss this chance to set your business up for success.
Here's to less hard days, constant growth, and a clear path forward. Proud to have you on #TeamLoseNoProfit as we build a business that works smarter to support our goals. Together, we thrive 🚀
Alicia Brentzel
Founder, From the Cut
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