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Welcome to the Sharpen Your Skills series, where we provide entrepreneurs with straightforward tools and strategies to enhance their business acumen and drive profitability. In each episode, we dive into a practical, easy-to-apply framework focused on helping you understand critical areas of your business.
In this episode, we’re tackling the 4 Quarter Accounting method—a simple but powerful way to interpret your Profit & Loss (P&L) statement for greater clarity and control. With just four key categories—Customer Acquisition Costs (CAC), Cost of Delivery, Operating Expenses (OPEX), and Profit, this approach offers a clear view of where your revenue is going and how to make more profitable decisions.
In This Episode:
-Understanding the 4-Quarter Accounting breakdown
-Real-life examples of how businesses use this model for profitability
-Tips on optimizing each quarter to maximize your bottom line
The Sharpen Your Skills series is designed for business owners looking to streamline complex concepts and take actionable steps toward financial success. So, whether you’re just starting or refining your strategies, this series has something for you.
Stay tuned for more episodes of Sharpen Your Skills as we continue exploring strategies that empower you to make smarter business decisions!
0:00 - Introduction to Sharpen Your Skills and 4-Quarter Accounting
0:37 - Simplifying Your P&L into Four Categories
1:24 - Category 1: Customer Acquisition Costs (CAC)
2:34 - Category 2: Cost of Delivery
3:45 - Category 3: Operating Expenses (OPEX)
5:08 - Understanding Profit in the 4-Quarter Model
5:54 - Analyzing Profitability with Real-Life Example (On Running)
7:16 - Troubleshooting: The “40-40-40” Rule and Common Pitfalls
8:12 - How High-Profit Brands Use Leverage in the 4-Quarter Model
9:18 - Key Takeaways: Applying the 4-Quarter Model to Your Business
9:55 - Final Tips and Free P&L Template Offer
