The Wheel of Business Success, Pt. III – Unlock Financial Success with In the Black by Allen Bostrom
Introduction
Welcome back to The Wheel of Business Success series! If you’ve been following along, you’ll know we’ve already covered two foundational books: Built to Sell and Profit First. These works lay the groundwork for creating a scalable and profitable business. Now, in Part III, we’re diving into a book that will help you understand the financial side of your business like never before: In the Black: Nine Principles to Make Your Business Profitable by Allen Bostrom.
Learn how to achieve sustainable financial success with the nine principles from In the Black.
A Quick Recap: The Wheel of Business Success
Before we dive into the nine principles outlined in In the Black, let’s revisit the fundamental concept of The Wheel of Business Success. At its core, this framework emphasizes profit and growth—goals every small business should strive for. Surrounding this core are four key areas every business must master: people, performance, strategy, and scale. Each of these areas is driven by principles and strategies that help you achieve sustained profit and growth.
In Part I, we discussed how to make your business salable with Built to Sell, and in Part II, we explored cash flow management with Profit First. Now, with In the Black, we’re focusing on building a strong financial structure to ensure your business thrives consistently.
Why In the Black is Essential for Business Success
When I first read In the Black, it fundamentally changed how I approach small business consulting. This book is packed with actionable insights, offering small business owners a clear roadmap to understanding their numbers and making data-driven decisions. Every business is unique, but the principles remain the same. Once you grasp these principles, you’ll be equipped to overcome any financial challenge your business faces.
Bostrom simplifies the complex world of finance into three fundamental areas of business:
Sales and Marketing
Production and Operations
Finance and Accounting
Each of these areas is governed by three principles, providing nine essential rules for building a profitable business. Let’s break them down.
Master the nine principles of In the Black to drive consistent profitability.
Sales and Marketing: The First Three Principles
Your business can’t thrive without sales. But it’s not just about selling products or services—it’s about creating value. The first three principles focus on establishing a strong sales and marketing foundation.
Nothing Happens Until You Make a Sale
Sales are the lifeblood of your business. Without sales, there is no revenue, and without revenue, there is no profit. Focus on generating sales first.A Deal is Only Good When It’s Good for Both Parties
A successful business relationship benefits both sides. Deals that only benefit you won’t build long-term loyalty. Always strive for mutual value.Grow Your Business Geometrically
Don’t aim for incremental growth—focus on exponential growth. Strategic marketing and customer retention will help your business scale sustainably.
Production and Operations: Efficiency and Improvement
Once you’ve mastered sales, it’s crucial to ensure your business runs smoothly. These three principles address the operational side of your business, focusing on communication, processes, and continuous improvement.
Communicate, Communicate, Communicate
Communication is essential to keeping your business running efficiently. Foster open communication between departments and with your customers to ensure alignment.Improve Your Internal Processes
Great businesses are built on systems, not just people. Create and refine internal processes to make your business more efficient and scalable.Take What You Have and Make It Better
Never become complacent. Even when things are going well, look for ways to improve your product quality, customer service, or internal processes.
Finance and Accounting: Understanding the Numbers
Finally, we come to the financial side of things. Sales and operations are crucial, but your financial acumen is what will ultimately keep your business thriving. These three principles guide how to manage your finances for long-term success.
Cash Flow, Cash Flow, Cash Flow
Cash flow is the most important factor in business. Without steady cash flow, your business will struggle. Prioritize managing and maintaining strong cash flow.Know Your Business
Understanding where your money is going is critical. Accounting is the language of business, and you need to become fluent in it to make informed decisions.Plan for the Future
Profit isn’t just a short-term goal—it’s part of your long-term strategy. Use financial insights to plan for future growth and investment.
Solid financial planning leads to sustainable business success.
Why You Need to Read In the Black
In the Black is more than just a business book—it’s a manual for financial survival. Whether you’re struggling with cash flow, operations, or marketing, this book will help you identify the weak points in your business and provide a roadmap for turning things around. If you’re serious about long-term business success, this is essential reading.
Take Action: Your Next Steps
Ready to get your business In the Black? Here’s how to get started:
Purchase a Copy of In the Black
This book is a must-read for any small business owner. Grab your copy on Amazon and start implementing the nine principles today.Schedule a Discovery Call
Want personalized advice on how to apply the principles of In the Black to your business? Schedule a discovery call with one of our CFOs and create a tailored action plan.Download Our Free Ebook
Download our free ebook, The Eight Key Drivers of Company Value, to complement the insights from In the Black. This resource will help you increase the value of your business step by step.
Conclusion: Getting Your Business In the Black
The nine principles outlined in In the Black provide a clear path to financial success. Whether you’re struggling with sales, operations, or finance, these principles will guide you toward a more profitable future. By focusing on cash flow, understanding your numbers, and planning for the future, you’ll be well on your way to building a sustainable, thriving business.
Are you ready to take control of your finances and get your business In the Black? Start today by purchasing the book, scheduling a discovery call, and downloading our free ebook.
