You Write the Next Chapter
Your business has many stories to tell. For your business to grow, the most important one is the story your numbers tell you. Without accurate numbers everything is run on assumptions.
This is more than just balancing your books. Be sure your bank accounts are balanced, your credit card purchases are categorized, accounts receivable is accurate.
What to know
- Revenue / Sales Daily, weekly, monthly quarterly, year-to-year
- Conversion rates
- Average Sale
- ‘Profit-pers’ – Profit per employee hour, profit per type of product, profit per transaction, profit per …
- Net and Gross Profit overall, per quarter, per month
- Break Even
- Key Performance Indicators for your team. While this is not a dollar figure, it has a big impact on your bottom line.
This is a lot to focus on. Do not let it overwhelm you. Take it one step at a time. Start new daily, weekly tracking systems and before you know it the story will write itself.
Where to start
- Be honest with yourself. If the numbers look great, well great, if the numbers suck, well great. Great because once you know your real numbers it is much easier to make the decisions you need to in your business.
- Do not make assumptions. Business owners in general have a good handle on what is going on in your business. You want more than your gut instinct here. If you kind-of, sort-of, sometimes know; you really do not know, and it can lead to bad decisions going forward.
- Hire someone to help you keep your books current. This can be an employee, an outside accounting firm, or for many smaller businesses an independent contractor bookkeeping expert is the right fit.
- When you stop doing it all yourself, stay in touch with what your numbers are telling you. Delegate, don’t abdicate.
- Be patient with yourself and with your business. As you make that 10-15% turn to become more profitable it can take time to make up for past mistakes. Accept them as the learning experience they are and be grateful you found them in time to right-the-ship.
As the business owner, you and you alone are responsible for the results in your business. Your team is there to help you. If you do not know where you are currently at and have a plan for where you are going no one can help you get there.
That does not mean you have to do it all alone. As questions, get help. While you may be the expert at what you do, there others who will help you get there.