Redesigning the P&L From A Marketers Point of View: Bridges Episode 1

Welcome to the first episode of our new series, Bridges, where we're all about helping marketers build that crucial connection between their world and finance. In the era of ecommerce dominance, understanding and impacting the financial outcomes of your business is more vital than ever.

In this series, Taylor, CEO of Common Thread Collective, will be diving deep into various topics each week to equip marketers with the financial fluency needed to make a real impact. Having run businesses like Common Thread Collective and 4x400, he's realized the significance of understanding where every marketing dollar goes and how it contributes to the overall financial health of an organization.

In this episode, we kick things off by exploring the fundamental financial document of any organization - the Profit and Loss Statement (P&L). We introduce the concept of "four quarter accounting," breaking down your P&L into four key categories: Cost of Delivery, Ad Spend, Operating Expenses (OPEX), and Profit.

By organizing your financials this way, you gain a clearer picture of where your money is going, allowing for more informed decision-making. We delve into the details of each category and how to set expectations for a healthy financial structure. Plus, Taylor provides you with a practical template to get started on implementing four quarter accounting in your business.

This episode is just the beginning. We're gearing up to cover topics like cashflow forecasting, cohort-specific LTV forecasting, and setting cost cap targets based on unit economics in the upcoming episodes.

So, if you're a marketer looking to bridge the gap between marketing strategies and financial outcomes, saddle up for some in-depth discussions. These might be longer videos (around 15-20 minutes), but our goal is for you to walk away with a richer understanding of how your role impacts the organization's bottom line.

Feel free to share your thoughts and suggestions in the comments. If you need more personalized assistance or have specific questions, visit our website at www.commonthreadco.com. Remember, we're here to help you navigate the world of marketing and finance. Thanks for tuning in, and I look forward to connecting with you in the next Bridges episode!