As they said in the movie Pretty Woman, “What’s your dream?”
While this is real life and not a movie, dreams really do come true. But, they won’t come true unless you plan for them and Make them Come True! I’ve had the opportunity to review a lot of numbers recently, including my own. It can be an ugly task as reviewing numbers reveals the sometimes harsh or totally awesome reality of where a business is headed. But … there is No Other Way to know whether the business is headed in the right or wrong direction.
It only takes a small change in cost of goods or increase in advertising or adding another staff member to change the bottom line of a business.
I recall looking at invoices for Earmolds and seeing an increase in shipping costs that meant I wasn’t charging enough and was actually losing money on Earmolds. It’s a small part of my business but I just hadn’t reviewed the invoices lately and enough small things add up to Big Things and will affect the Bottom Line.
How often do you review your numbers?
How often do you review the basic numbers in YOUR business – cost of goods sold, returns for credit, Help Rate, calls converted to appts, cost of legal and professional services, supplies, aging accounts receivable, insurance write offs, ROI on marketing efforts? When is the last time you sat down with staff and reviewed their wage and job performance? Does your staff have goals that They Track and are they meeting those goals?
I know you are thinking, “How can I possibly have time for one more thing?”
Well, when it comes to business, you have to MAKE the time, or things Will Get Away From You and you will be working harder for less money. That is a fact! I have Been There and Done that Many Times! It is much easier to be able to Know than to Think you Know where the Business is Headed because once you know, you can take action, make changes and Do Something About Those Numbers!
This is the Matrix I use to keep my business on track and in include your salary in the 30% for labor costs.
I know many business owners that are involved in a network and the network knows their numbers but the business owner doesn’t! It’s critical that YOU, the business owner, knows your own numbers. It may be time consuming, but it’s not rocket science. It’s just business. Once you get used to knowing and reviewing your numbers, it will get easier and I know it will help your business head in a New Direction!
Don’t avoid a task that needs to be done. It will only get worse! Block out Two Hours This Week with No Interruptions and Just Do It! Know Your Story! You will be so glad you did and you will sleep better knowing.